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Bag of cocoa price increased from GH¢1,308 to GH¢2,070

Business

1 months ago
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The government of Ghana, in consultation with stakeholders in the cocoa industry, has increased the price of cocoa.

The cocoa production price has seen a drastic leap of 58.27% from GH¢ 20,928 per tonne to GH¢ 33,120 per tonne for the rest of the 2023/24 cocoa production season.

The new price per tonne translates into GH¢ 2,070 per bag of 64kg gross weight.

In a press release dated April 5, 2024, the new prices are expected to take effect on Friday, April 5, 2024.

The increase in cocoa prices is a move by the government to alleviate the plight of cocoa farmers.

It is recalled that some cocoa farmers lost interest in the cocoa farming business, which compelled some farmers to sell their farms to galamsey operators.

This unfortunate situation necessitated the government's quick response to save the cocoa industry.

Portions of the letter state that "the increase in producer price of cocoa has become necessary to enhance the income of coca farmers in line with the vision of the NPP government and in response to the rising prices of cocoa on the international market.

An excerpt from the press release signed by the Chief Executive Officer of Ghana Cocoa Board further stated that the welfare of cocoa farmers is dear to the heart of President Akufo-Addo.

"It is for this reason that since the NPP government assumed office in 2017, the producer price of cocoa has been increased by 336% from Ghc 7,600 per tonne in the 2016/17 cocoa season to an unprecedented GH¢ 33,120 per tonne for the rest of the 2023/24 cocoa season."

In addition to the government's increment of the producer margins, there is a review of the buyer's margin to GH¢ 2980 per tonne for the rest of the 2023/24 cocoa season.

This increase, according to the cocoa board CEO, is to cushion the LBC's against the increase in finance cost due to an increase in producer price of cocoa.

source: Theannouncergh.com