Government raises cocoa producer price to almost 60% amidst global market trends

The government of Ghana, in collaboration with stakeholders, has announced a significant increase in the producer price of cocoa for the remainder of the 2023/24 crop year, in a move aimed at enhancing the income of cocoa farmers in the country.

The decision comes amidst a backdrop of rising cocoa prices on the international market, according to the Ghana Cocoa Board (Cocobod).

Effective Friday, April 5, 2024, the producer price of cocoa sees a substantial surge of 58.26 percent, rising from GH¢20,928 per tonne to GH¢33,120.00 per tonne. This revision compares to GH$2,070 per bag of 64 kg gross weight, signaling a concerted effort by the government to improve the welfare of cocoa farmers.

In a statement issued by Cocobod to announce the development, it explained that the surge in cocoa prices is in line with the vision of the government.

“Since assuming office in 2017, the government has consistently prioritized the wellbeing of cocoa farmers, evidenced by a remarkable 336 percent increase in the producer price of cocoa from GH¢7,600 per tonne in the 2016/17 season to the current unprecedented level”, the statement said.

Furthermore, the government has approved a revision of the buyers’ margin to GH¢2,980.00 per tonne for the remainder of the 2023/24 cocoa season. This adjustment aims to mitigate the impact of increased finance costs for Licensed Buying Companies (LBCs) resulting from the rise in the producer price of cocoa.

Additionally, the government has also approved a review of the buyers’ margin to GH¢2,980.00 per tonne for the rest of the 2023/24 cocoa season.

This increase is expected to cushion the LBCs against the increase in finance cost due to an increase in the producer price of cocoa.