Ghana is set to increase the state-guaranteed price paid to cocoa farmers by nearly 45% for the 2024/25 crop season, according to two sources familiar with the price review process.
This is part of efforts to boost farmers’ incomes and curb the smuggling of cocoa beans out of the country.
The world’s second-largest cocoa producer previously raised the farmgate price by over 58% in April to 33,120 cedis ($2,123.08) per metric ton, or GH¢2,070 per 64 kilograms, for the remainder of the 2023/24 season. This mid-season price hike followed a similar move by neighbouring Ivory Coast, the top cocoa producer, which increased its farmgate price to 1,500 CFA francs (US$2.55) per kilogram for the April-to-September mid-crop of the 2023/24 season, up from 1,000 CFA francs the previous season.
One source according to Citi News, revealed that Ghana’s cocoa producer price review committee has set the new price at 48,000 cedis per ton, equivalent to 3,000 cedis per 64 kg of cocoa, for the 2024/25 season, which is expected to begin later in September. This is an increase of almost 45%.
The source said the decision is awaiting Cabinet approval before it is officially announced.
Both sources asked not to be named because the information is not yet public. Another source said Cabinet is unlikely to change the committee’s decision, adding that the price hike of more than 48,000 cedis per tonne will leave COCOBOD, the Ghana Cocoa Board, to the free.
Ghana’s new award should also match the yet-to-be-announced Fargate Award in Ivory Coast in 2024/25. Two major cocoa countries have launched a program to coordinate farm prices and cocoa supply to support the sector and increase farmers’ income.
Cocoa prices have soared this year due to disease and bad weather in Ghana and Ivory Coast, which account for more than 60 percent of the world’s cocoa supply, accounting for a third of the market.
On Thursday, the International Cocoa Organization raised its global cocoa forecast for the 2023/24 season (October to September) from 439,000 tonnes to 462,000 tonnes, citing a 45-year low at the mill. to mill.
COCOBOD originally planned to start the 2024/25 season on September 1, earlier than usual, and aimed to cut production by 650,000 tonnes. However, both sources said the opening could be delayed. The primary goal is to help prevent the sale of bananas, due to low prices and delayed payments to farmers.
Some cocoa farmers and licensed traders in Ghana have accused the two parties of withholding cocoa beans to take advantage of the price increase expected next year.
