Cocoa Prices Increase by 58.26% in Ghana: Farmers are Happy?

picture of price increase of cocoa in Ghana by Akufo-Addo

The Government of Ghana, in collaboration with stakeholders, has undertaken a comprehensive review of cocoa producer prices for the remainder of the 2023/24 crop year. Ghanaian farmers are happy about this great news of an increase in cocoa prices.

For some time now, farmers in Ghana have eagerly awaited an uptick in cocoa prices, drawing inspiration from trends in neighboring countries. Their hopes were realized when the official press release letter confirmed a substantial increase in the Producer Price of cocoa by an impressive 58.26%, soaring from GH¢20,928 per tonne to GH¢33,120.00 per tonne for the rest of the 2023/24 cocoa season. This translates to GH¢2,070 per bag of 64 kg gross weight and is taking effect from Friday, 5th April 2024.

The rationale behind this momentous decision is twofold: to bolster the income of cocoa farmers in alignment with the vision of the NPP government and to address the escalating cocoa prices on the global market. Recognizing the pivotal role of cocoa farmers in the nation’s economy, His Excellency Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana, has consistently championed their cause. Since assuming office in 2017, the NPP government has orchestrated a remarkable 336% increase in the producer price of cocoa, elevating it from GH¢7,600 per tonne in the 2016/17 cocoa season to an unprecedented GH¢33,120 per tonne for the rest of the 2023/24 cocoa season.

The government has taken proactive measures to alleviate the financial strain on Licensed Buying Companies (LBCs) by approving a revision of the Buyers’ margin to GH¢2,980.00 per tonne for the remainder of the 2023/24 cocoa season. This strategic move aims to cushion LBCs against the surge in finance costs stemming from the heightened producer price of cocoa.

The implications of this price adjustment extend far beyond the immediate financial gains for cocoa farmers. It signifies a tangible commitment to rural development, poverty alleviation, and sustainable agriculture. By empowering cocoa farmers with increased incomes, the government fosters a conducive environment for investment, innovation, and economic growth across rural communities.

In addition to its economic effects, the price increase serves as a testament to the government’s commitment to social justice and equitable distribution of wealth. By prioritizing the welfare of cocoa farmers, particularly smallholder farmers who form the backbone of the cocoa industry, the government upholds principles of inclusivity and fairness in its policy interventions.

Sustained efforts to support cocoa farmers must remain a cornerstone of Ghana’s agricultural strategy. This involves investing in infrastructure, technology, and capacity building initiatives to enhance productivity, quality, and resilience within the cocoa sector. Furthermore, concerted action is needed to address systemic challenges such as climate change, pests, and diseases that pose existential threats to cocoa cultivation.

The recent increase in cocoa prices heralds a new chapter of prosperity and progress for Ghana’s cocoa farmers. As cocoa remains a vital pillar of Ghana’s economy, ensuring the prosperity of cocoa farmers is not just a matter of economic policy but a moral imperative for building a more inclusive and equitable society.

Even though farmers are happy, a section of them feel that the government could have done better in this price increase of cocoa.

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