In an effort to deter Ghanaian cocoa farmers from smuggling their beans to neighboring Ivory Coast, the government of Ghana has raised the price of cocoa by 60%, making it the highest in the West African sub-region.
The new price was announced at the opening of the 2023/2024 cocoa season and has seen a bag of cocoa increase from GH¢800 to GH¢1,308.
This increase translates to an increment of GH¢ 12,800 to GH¢ 20,943 per tonne. The cocoa industry regulator in Ghana has reportedly proposed a new farm-gate price of GHC20,800 ($1,825) per ton for the upcoming season, as opposed to the current price of GHC12,800.
However, this increase is still pending government approval.
President Nana Addo Dankwa Akufo-Addo made the announcement of the price increase during his visit to Tepa on Saturday, September 9, 2023.
He emphasized that this new price is the highest in the sub-region in the past 15 years and is intended to improve the livelihoods of cocoa farmers, as well as provide them with a fair and remunerative price for their efforts.
The increase in cocoa price aims to discourage farmers from smuggling their beans to Ivory Coast, where returns for the commodity are reportedly better.
By offering a higher price to Ghanaian cocoa farmers, the government hopes to retain the beans within the country and boost the local cocoa industry.
This move is significant for Ghana, as it is one of the world’s largest cocoa producers, and cocoa is a major source of revenue for the country. By incentivizing farmers to sell their cocoa within Ghana, the government aims to support the livelihoods of farmers and promote economic development within the cocoa industry.
The proposed increase of 60% in cocoa price has received mixed reactions from various stakeholders, including cocoa farmers and industry experts.
While some farmers appreciate the efforts to improve their income, others have expressed concerns about potential inflation and its impact on the local market.
Overall, the government’s decision to increase cocoa price is aimed at striking a balance between the interests of cocoa farmers and the economic growth of the country.
The approval of the proposed new farm-gate price will determine the final outcome of this announcement and its implications for the cocoa industry in Ghana.
By Vincent Kubi