"Cocoa Producer Price Set For Major Dollar-Denominated Hike, But Strong Cedi May Limit Gains, Says COCOBOD"

" Cocoa Producer Price Set For Major Dollar-Denominated Hike, But Strong Cedi May Limit Gains, Says COCOBOD\u00a0 \r\n Ghana\u2019s cocoa producer price is expected to undergo a significant upward adjustment in dollar terms ahead of the next crop season, in response to soaring global cocoa prices. However, the Ghana Cocoa Board (COCOBOD) has cautioned that the sharp appreciation of the Ghanaian cedi could erode the real benefits for farmers when converted into local currency. \r\n The development comes as part of government and industry efforts to align domestic producer prices with the bullish international cocoa market, which has witnessed historic price rallies in recent months due to supply constraints and speculative pressures. \r\n Speaking on PM Express, Chief Executive Officer of COCOBOD, Dr. Randy Abbey, confirmed that the Board is preparing for a substantial increase in the dollar value of the producer price. He, however, acknowledged that the current strength of the cedi may blunt the intended financial impact on cocoa farmers. \r\n \u201cThe truth is that we are convinced and it is going to happen. On the dollar side, we will see its impact. Based on the strength of the cedi, in cedi terms, you may not see anything significant,\u201d Dr. Abbey explained. \u201cWhat we are seeing now is a situation where global prices are high, and that would normally translate into higher incomes for our farmers. But with the cedi appreciating sharply, the gains could be reduced when translated into Ghana cedi.\u201d \r\n He noted that while global price conditions favour a marked increase, COCOBOD is also weighing the domestic currency dynamics to ensure farmers are not shortchanged in real income terms. \r\n According to Dr. Abbey, COCOBOD remains committed to safeguarding the welfare of farmers and is currently engaging stakeholders to devise a pricing mechanism that fairly reflects both international trends and the realities of the local economy. \r\n \u201cWe must strike a balance. Farmers deserve to benefit from the favourable market conditions, and we are working with stakeholders to ensure the final producer price reflects both global trends and domestic realities,\u201d he stated. \r\n The anticipated adjustment comes amid broader concerns over how exchange rate fluctuations and inflation affect income stability for primary producers in Ghana\u2019s key export sectors. \r\n Cocoa remains a vital source of foreign exchange for Ghana, and the producer price is a critical policy lever for both economic sustainability and rural livelihoods. Ensuring that cocoa farmers receive a fair share of the market gains is therefore central to maintaining production levels and sectoral resilience. "

"Cocoa Producer Price Set For Major Dollar-Denominated Hike, But Strong Cedi May Limit Gains, Says COCOBOD"

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