The revised price, he said, is expected to exceed that of neighbouring Ivory Coast, one of the world’s top cocoa-producing countries.

During a working visit to the Western North Region, Dr. Abbey explained that the new pricing policy is part of a broader strategy to improve the welfare of Ghanaian cocoa farmers by offering them better compensation for their produce.

The goal, he emphasized, is to make Ghana’s cocoa industry more competitive while ensuring farmers receive a fair share of the global cocoa value chain.

The announcement comes at a time when global cocoa prices have surged due to declining production and climate challenges across West Africa.

Dr. Abbey’s visit took him to several cocoa-growing communities and COCOBOD offices, where he engaged with farmers and staff to assess their challenges and opportunities.

However, while touring the Sehwi Boako cocoa station in the Sehwi Wiawso Municipality, Dr. Abbey expressed concern over a large pile of cocopeat that had been left to rot.

He called on district officers to ensure proper resource management to avoid wastage of valuable by-products that could be repurposed for agricultural use.

]]> http://34.58.148.58/increment-in-cocoa-farmgate-price-an-insult-cocoa-farmers-to-cocobod/ Mon, 08 Apr 2024 09:42:37 +0000 https://www.adomonline.com/?p=2378192 Some cocoa farmers in Ghana have expressed disappointment in government over the recent cocoa farmgate or producer price increment for the prevailing 2023/24 season.

This follows the announcement of a 58.26% increase from GH¢20,928 per tonne to GH¢33,120.00 per tonne for the rest of the 2023/24 cocoa season.

This figure translates into GH¢2,070 per bag of 64 kg gross weight from GH¢1,308.99.

But members of the Ghana National Cocoa Farmers Association say they deserve more, considering the global surge in cocoa prices.

Stephenson Anane Boateng, President of the association, emphasized in a media interview that cocoa farmers are feeling unfairly treated.

He described the increment as an insult to the hard work of cocoa farmers and urged the government to do what is right by providing them with a fair price.

Mr Boateng further criticized COCOBOD, stating that they are withholding farmers’ money without justification.

“Cocoa has been raised globally to $10,000 per metric ton. So if you compare and you convert to our currency, it is running over GH¢9,000. We totally disagree with them. We pay our labor, we buy inputs for the farm, and then we also pay ourselves.

“So in a nutshell, we get only GH¢600 for that while COCOBOD also gets GH¢7,000. So what work did COCOBOD do that they give us that money. It’s an insult!”

Last week, the Ghana Cocoa Board (COCOBOD) announced a significant increase of 58.26 percent, setting the price at GH¢33,120 cedis per ton for the 2023/2024 crop season.

The new price came into effect on April 5, 2024.

COCOBOD stated that this decision is intended to share the benefits of the soaring global cocoa prices and to deter the smuggling of cocoa beans.

However, the Minority in Parliament insists the new price is inadequate and does not adequately compensate cocoa farmers.

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GAWU is of the view that such an increase, will not only encourage farmers to produce more, but will also help reduce practices where farmlands are sold to illegal miners.

Speaking to Joy Business in reaction to reports that COCOBOD is considering an upward adjustment of cocoa prices for farmers, the General Secretary of GAWU, Dr. Edward Kareweh argued that the financial wellbeing of cocoa farmers must be paramount.

He stated that there is no justification for government to continue pegging cocoa prices below Ivory Coast any time COCOBOD announces the price for the new planting season.

“Why must we always look at the price set by Ivory Coast and fix our price slightly below theirs. Ivory Coast has increased their price by 100 percent. What I hear is we are considering 50 percent. Why can’t we increase cocoa price by 150 percent”, he argued.

Dr. Kareweh observed that such an increase will motivate farmers to increase production and stop selling farmlands to illegal miners who offer exorbitant deal.

“When you listen to the farmers selling their farmlands, they tell you that the miners offer them huge amount of money, which they can’t decline. If the cocoa farmer is earning better, they won’t sell their farms”.

Dr. Kareweh underscored the need to protect cocoa farmers since the product is very essential in fetching the country foreign earnings.

He pointed out that the foreign income from cocoa has been a reliable source of funding to support Ghana’s economic growth.

Touching on the increasing prices of cocoa on the world market, Dr. Kareweh said the high demand of the product indicates that it is time for the producer to determine the price.

“We have seen the consumer of cocoa always setting the price. However, as the price go up on the world market, the producer must take advantage to set the price”, he said.

Calls for price increase  

The Ghana COCOBOD has told Joy Business government is considering an increase in the farmgate prices of cocoa beans for farmers.

The decision, which is currently being deliberated upon by stakeholders in the cocoa sector is targeted at improving farmers’ wellbeing, as well as reduce illegal movement of cocoa beans to neighboring countries.

The reason for this move, according to COCOBOD is to also help stop smuggling to neighboring countries, particularly Ivory Coast which has announced a 100 percent increase in farmgate prices, following a surge in global prices of the commodity.

Already, Bloomberg is predicting government may announce above 50 percent increase in the prices for farmers.

According to Bloomberg, if Ghana, which is the world’s second-biggest producer of the chocolate ingredient should proceed with the pay boost, it would mark the first time that the country will raise farmers pay twice during the main crop season, which started last September and ends on June 30.

Government has already raised the rate by 63.5 percent to 20,928 cedis a ton at the beginning of the period.

Reasons world prices went up

Bloomberg analysis shows that Cocoa futures in New York soared to multiple records in recent months after bad weather and disease hurt output from Africa.

The rush to secure supplies first pushed prices higher, but futures have now more than doubled this year as margin calls and forced buying put traders under stress.

The analysis also said the spike in wholesale markets means the share received by Ghanaian farmers has dwindled to 16% from 44% seven months ago, when the government last updated the farmgate price. Even if farmer pay doubles, it will remain far below levels on the world market.

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