Cocoa farmers demand 72.5% increase in farmgate prices
Cocoa farmers in Ghana are making a bold demand for a significant hike in farm-gate prices, setting the stage for a potential game-changer in the country’s cocoa industry. The Ghana Civil Society Cocoa Platform (GCCP) has called for a staggering 72.5 percent increase, pushing the price per 62.5kg bag of cocoa beans from GH¢800 to GH¢1,380. This demand comes ahead of the eagerly anticipated announcement of new cocoa prices for the 2023/2024 cocoa season by the Ghana Cocoa Board (COCOBOD).
Addressing the press at a conference in Accra, Leticia Yankey, a prominent cocoa farmer and founder of Cocoa Mmaa, underscored the urgency of COCOBOD acceding to the farmers’ demands. Yankey asserted that Ghanaian cocoa farmers should, as per GCCP’s calculations, receive no less than GH¢22,080 per tonne, translating to a minimum of GH¢1,380 per bag. These calculations are meticulously crafted, considering international market dynamics, the Living Income Differential (LID) of US$400 per tonne, and the current International Cocoa Organization (ICCO) world cocoa market price, which stands at US$3,647 per tonne.
The GCCP’s demands have been fueled by several pressing issues. Firstly, the organization contends that the proposed price increase will act as a potent deterrent against cocoa smuggling along Ghana’s eastern and western borders. The lure of significantly higher prices in neighboring countries practicing liberalized cocoa marketing has been a thorn in the side of Ghana’s cocoa industry, resulting in illicit activities that undermine the nation’s cocoa sector.
Secondly, with rising living costs and inflationary pressures, cocoa farmers are grappling with financial hardships. The increased farm-gate price, if approved, could alleviate some of these economic challenges, ultimately enhancing the livelihoods of cocoa farmers.
The international cocoa market’s upward trajectory and the implementation of the LID mechanism underscore the timeliness of the cocoa farmers’ plea. However, it is important to note that the last time the Ghanaian government adjusted cocoa farm-gate prices was in 2020, raising them by 21 percent. Since then, there have been no further adjustments, making the forthcoming COCOBOD announcement on September 9, 2023, a highly anticipated event.
Ghana’s cocoa industry, a linchpin of the nation’s economy, remains at the heart of this debate. As the GCCP’s clarion call for enhanced farm-gate prices reverberates, all eyes are on COCOBOD to determine whether these demands will reshape the cocoa landscape in the West African nation.
