The government has raised the purchase price of a 64-kilogram bag of cocoa from GH¢800 to GH¢1,308, marking a 63.5% increase.
This change also means that the price per tonne of raw cocoa beans has risen from GH¢12,800 to GH¢20,943.
President Akufo-Addo unveiled this new pricing structure during an event with chiefs and cocoa farmers in Tepa, Ashanti Region.
He emphasized that this new price represents the highest paid to cocoa farmers in West Africa in over 50 years.
The President also revealed that the cocoa season was launched in September instead of the usual October to coincide with the period when farmers are sending their children to school.
This decision allows cocoa proceeds to cover educational expenses, eliminating the need to borrow at higher interest rates.
Cocoa farmers at the event responded with jubilation to the announcement, expressing their joy with spontaneous applause and attempts to approach the President’s podium in appreciation.
The devaluation of the Ghanaian cedi had led some farmers to smuggle their cocoa across borders into neighboring countries. The increased producer price aims to address challenges like smuggling and illegal mining in the cocoa sector.
President Akufo-Addo acknowledged the recent low international cocoa prices and the additional economic strain due to the COVID-19 pandemic. Despite these challenges, the government and the Ghana Cocoa Board (COCOBOD) have worked to raise the producer price.
The increment equates to $1,821 or 70.5% of the gross free on board (FOB) price per tonne of cocoa beans. Cocoa prices have steadily increased from GH¢7,600 per tonne in 2016 to GH¢12,800 in 2022.
The President stressed that the cocoa industry has undergone significant transformation under his administration, with productivity enhancement initiatives positively impacting the sector. He credited cocoa farmers as the most reliable stakeholders in the cocoa value chain.
Smuggling of cocoa beans to neighboring countries has been a significant challenge in recent years. The Minister of Food and Agriculture, Dr. Bryan Acheampong, assured that the government is taking steps to combat this issue. He also highlighted the threat posed by illegal mining to the cocoa sector and urged farmers not to sell their land for illicit small-scale mining.
Joseph Boahen Aidoo, CEO of COCOBOD, noted that the European Union has introduced a law banning cocoa beans without traceability from entering its market starting January 1, 2025. He emphasized the country’s readiness to comply with this law through the Cocoa Management System, which registers all cocoa farms and farmers.
Mr. Aidoo expressed gratitude to the President on behalf of cocoa farmers for the increased producer price, hoping it will help tackle smuggling and illegal mining challenges threatening the sector’s sustainability.
He called on everyone to commit to productivity enhancement programs, sustainable farming practices, and responsible resource utilization.