The Government of Ghana, in collaboration with stakeholders, has announced a significant increase in the Producer Price of cocoa for the remaining period of the 2023/24 crop year.
This decision aims to support cocoa farmers and address the rising prices of cocoa on the global market.
The new Producer Price has been revised by 58.26%, from GH¢20,928 per tonne to GH¢33,120.00 per tonne. As a result, the price per bag of cocoa, weighing 64 kg gross weight, will increase from GH¢1,308 to GH¢2,070. This adjustment will take effect from Friday, April 5, 2024.
The government’s move to increase the Producer Price is in line with its commitment to improving the income of cocoa farmers. Over the years, the price of cocoa has witnessed a substantial surge of 336%, rising from GH¢7,600 per tonne in the 2016/17 cocoa season to the current level of GH¢33,120 per tonne for the remainder of the 2023/24 cocoa season.
In addition to the Producer Price adjustment, the government has also approved a review of the Buyers’ margin. The Buyers’ margin has been set at GH¢2,980.00 per tonne for the rest of the 2023/24 cocoa season. This measure aims to provide financial relief to Licensed Buying Companies (LBCs) by mitigating the impact of increased finance costs resulting from the higher Producer Price of cocoa.
Both the new Producer Price and Buyers’ margin adjustments will come into effect on Friday, April 5, 2024. These changes are expected to support cocoa farmers in Ghana and promote the stability and growth of the cocoa industry in the country.
Overall, the government’s decision to increase the cocoa price demonstrates its commitment to ensuring the welfare of cocoa farmers and addressing the challenges posed by the global cocoa market. The adjustments will provide a much-needed boost to the cocoa sector and contribute to the economic development of Ghana.
By Vincent Kubi