GHANA – Ghana has announced a 45 percent increase in the producer price of cocoa for the 2024/2025 crop season, raising the price of a 64kg bag of cocoa beans from US$132 to US$192.
The new price aims to curb cocoa smuggling and improve the welfare of farmers, according to the country’s Agriculture Minister, Bryan Acheampong.
The increase translates to a farm gate price of US$3,063 per tonne, marking a 129 percent jump from the opening price of US$1,335 per tonne for the 2023/2024 season.
Acheampong described this price hike as “an unprecedented increase of 129.36 percent,” emphasizing the government’s commitment to enhancing the livelihoods of Ghana’s cocoa farmers and strengthening the sector.
The price adjustment follows a mid-season increase last year when the government raised cocoa prices from US$1,335 per tonne to US$2,113 per tonne in response to soaring international cocoa prices.
Recent challenges in cocoa production, such as poor harvests in top-producing countries like Ghana and Côte d’Ivoire, have led New York cocoa futures to surge above US$7,000 per tonne.
Ghana’s cocoa sector, which contributes approximately 10% of the nation’s GDP, has faced difficulties in recent years, including weather disruptions, disease outbreaks, inadequate inputs, and smuggling.
Additionally, the depreciation of the Ghanaian cedi has further squeezed farmers’ margins, despite international cocoa prices reaching US$10,000 per tonne in March.
High production costs, rising fertiliser prices, and poor road infrastructure have compounded these challenges.
The Cocoa Swollen Shoot Virus Disease has also devastated nearly 500,000 hectares of cocoa farms, representing about 29 percent of Ghana’s total cocoa production area.
The price increase comes as Ghana gears up for the European Union Deforestation Regulation (EUDR), set to take effect at the end of December 2024.
The law mandates EU importers of commodities, including cocoa, to prove that their supply chains do not contribute to deforestation or face significant penalties.
In response, Ghana has begun piloting a traceability system to track cocoa beans from farm to port.
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