Cocoa: Gov’t raises farmgate price from GHS 660 to GHS 800; new price effective October 7
Fixed farmgate price paid to cocoa farmers has been raised by 21% by government from GHS 660 to GHS 800 per bag [64kg] for the 2022/2023 season starting on October 7, 2022.
The increment in the farmgate price by government is higher than the 15 to 20% increment demanded by the Ghana Civil-Society Cocoa Platform (GCCP).
Announcing the new farmgate price, Minister for Agriculture, Dr. Owusu Afriyie Akoto, speaking at a press briefing said the cedi depreciation against the dollar prevented government from increasing the figure beyond 21%.
“We are all aware of the depreciation of the cedi this year. This means government will have to take some cut.
“We are pleased to announce that government has increased the producer price of cocoa by 21% from ¢10,560 per tonne to ¢12,800.00 per tonne. The producer price represents 89.99% of the net FOB value.
“This figure translates into ¢800 per bag of 64 kg. gross weight and takes effect from Friday, 7th October, 2022”, he stated.
Adding that, the 21% rise in the producer price of cocoa is a testament to government’s resolve to ensure farmers earn a decent income and make cocoa farming lucrative.
He further stressed that government will continue to implement initiatives to build a robust, resilient and sustainable cocoa industry where cocoa farmers and their communities will thrive.
“To ensure a decent standard of living for Ghanaian cocoa farmers after retirement, government will from November 2022 move from the pilot phase to the implementation phase of the Cocoa Farmer’s pension scheme. The scheme remains an unprecedented achievement under President Akufo-Addo,” he stated.
Touching on other rates, Dr. Akoto disclosed that the Producer Price Review Committee (PPRC) also approved the rates and fees for all other stakeholders in the supply chain.
“These include the buyers’ margin, hauliers’ rate, warehousing and internal marketing costs, as well as, fees for disinfestation, grading and sealing and scale inspection,” he quipped.
Meanwhile, Ghana’s neighbour, the Ivory Coast, has raised the fixed farmgate price paid to cocoa farmers by over 9% to 900 CFA francs ($1.33) per kilogramme from 825 CFA francs for the main crop of the 2022/2023 season which started on October 1, 2022.
Ivory Coast’s farmgate price is pegged at GHS 858, higher than Ghana’s GHS 800 farmgate price.
