Ghana’s government has announced a 45% increase in the producer price of cocoa for the 2024/2025 crop season, aiming to reduce smuggling and improve farmers’ welfare.
New Price:
The farm gate price rises to $3,063 per tonne, a 129% increase from last season’s $1,335 per tonne.
Government’s Commitment:
Agriculture Minister Bryan Acheampong stated, “This appreciable increment in the producer price of cocoa signifies the government’s commitment to improve the sector and the livelihoods of the Ghanaian cocoa farmer.”
Smuggling Reduction:
Experts believe the price hike will lower the incentive for illegal cross-border sales, allowing farmers to reinvest in their cocoa farms.
Global Market Impact:
Ghana and Ivory Coast, the world’s top cocoa producers, have seen prices surge due to poor harvests.
Challenges:
Ghana’s cocoa sector faces:
-
Depreciating cedi (down 20% against the dollar)
-
Soaring production costs
-
Cocoa Swollen Shoot Virus Disease (devastating 29% of cocoa production area)
-
Poor road networks
Farmers’ Benefits:
The price increase aims to offset these challenges and improve farmers’ margins.
Cocoa Sector Significance:
The sector accounts for 10% of Ghana’s GDP, relying heavily on smallholder farmers.
Next Steps:
The new price takes effect immediately, marking a significant development in Ghana’s cocoa industry.
