President Nana Addo Dankwa Akufo-Addo yesterday announced a 28% uptick in the price of cocoa.
He made the announcement in Sefwi-Wiawso in the Western North Region when he launched a cocoa rehabilitation programme in that major cocoa production area during his three-day working visit there.
“Nananom, beginning 1st October 2020, I am happy to announce the award of a new cocoa producer price of GH¢10,560 per metric tonne, equivalent to GH¢660 per bag for the coming 2020/21 crop year,” he said amid jubilation.
The 2019/20 producer price of GH¢8,240 per metric tonne which is GH¢514 per bag was an 8.2% increase over the 2018/2019 price of GH¢7,615 which was GH¢475 per bag.
“By this new producer price, we have kept faith with our commitment under the international arrangement with Côte d’Ivoire and global stakeholders, by awarding to our farmers the full four hundred United States dollars per metric ton (US$400/MT) Living Income Differential (LID),” the President noted.
“By this substantial increase in the producer price, we are also delivering on our 2016 manifesto promise to reward handsomely the hard work of our cocoa farmers and their unequalled contribution to the economy of Ghana over the years,” he added.
Living Income Differential
The Living Income Differential, he said, remains one of the challenges being faced by government in that cocoa farmers receive farm gate prices for their produce.
The President expressed dissatisfaction over the fact that even as Ghana and Cote d’Ivoire produce 65% of the worldwide cocoa used in mostly making chocolates, farmers in the two countries receive just $6 billion from the estimated $100 billion industry.
“Government believes that value-addition to our cocoa and the search for new markets will make us more money than all the aid given to us by all the donor countries,” he indicated.
President Akufo-Addo said Ghana and Cote d’Ivoire had come together in a strategic partnership to get better prices for the farmers, adding “this has resulted in a joint cocoa production and marketing policy, which is already paying dividends.”
One of the dividends of the common policy initiative, he said, is the fact that “both countries are receiving a Living Income Differential (LID) of four hundred United States dollars (US$400) per ton of cocoa, which is an additional earning from the world market price for our farmers.”
The Living Income Differential, he said, would guarantee a level of stability to the producer price of cocoa and sustainability of the industry.
By A.R. Gomda