The government has increased the cocoa producer price from GH¢8,240 to GH¢10,560 per tonne for the 2020/21 crop year.
The current increment, working out to 28 per cent over the previous year’s price, also translates into GH¢660 per bag of 64 kilogrammes.
The current price per 64kg bag of cocoa is GHC514. It had earlier been increased by 8.2% from GHC475 per bag.
The President, Nana Addo Dankwa Akufo-Addo, made the announcement at the Western North Regional capital, Sefwi Wiawso, yesterday, where he also launched the Cocoa Rehabilitation Programme.
“Nananom, beginning 1st October 2020, I am happy to announce the award of a new cocoa producer price of ten thousand, five hundred and sixty cedis (GH¢10,560) per tonne, equivalent to six hundred and sixty cedis (GH¢660) per bag for the coming 2020/21 crop year. This represents a hike of more than twenty-eight per cent (28 per cent) over the price obtained in the outgoing crop year of 2019/2020,” he said.
The President added that the current 2019/20 producer price of GH¢8,240 a tonne or GH¢514 per bag, was an 8.2 per cent increase over the 2018/2019 price of GH¢7,615 per tonne or GH¢475 per bag.
“By this new producer price, we have kept faith with our commitment under the international arrangement with Cote d’Ivoire and global stakeholders, by awarding to our farmers the full four $400 per tonne Living Income Differential (LID),” President Akufo-Addo said.
He stated that by that substantial increase in the producer price, the government was also delivering on its 2016 manifesto promise to reward handsomely the hard work of cocoa farmers and their unequalled contribution to the economy over the years.
Living Income Differential
Touching on the unstable nature of cocoa prices on the world cocoa market, President Akufo-Addo said: “It remains one of the biggest challenges to ensuring payment of decent farm-gate prices to our cocoa farmers.”
With Ghana and Cote d’Ivoire responsible for producing 65 of the raw cocoa beans used in making chocolates, the President bemoaned the fact that cocoa farmers from the two countries just earned $6 billion from an over $100 billion chocolate industry.
That, he explained, was the meagre return that hardworking farmers got from their toil.
“Government believes that value-addition to our cocoa, and the search for new markets will make us more money than all the aid given to us by all the donor countries. We shall gain some dignity, and spare the donors the fatigue we have all heard about,” he added.
President Akufo-Addo added that the rationale for the strategic partnership between Ghana and Cote d’Ivoire, the common initiative of President Alassane Ouattara of Cote d’Ivoire and him, which was manifesting itself in a joint cocoa production and marketing policy, was already paying dividends.
He said the $400 per tonne LID was an additional earning from the world market price for cocoa farmers in both countries.
“The Living Income Differential is going to guarantee some stability to the producer price of cocoa and sustainability of the industry in Ghana and Cote d’Ivoire,” President Akufo-Addo said.