President Nana Akufo-Addo has announced a new producer price of GH¢1,308 per bag of cocoa at a colorful event at Tepa, in the Ashanti Region. According to the President, the new cocoa price is the highest ever paid to cocoa farmers within the West-African Sub-Region.
President Akufo-Addo in his address stated that the prices of cocoa internationally have remained very low and even worsened by the Covid-19 pandemic. However, COCOBOD and the government have taken very difficult decision of increasing the producer price of cocoa to cushion the Ghanaian farmer.
“Cocoa prices have increased from GH¢7,600 per tonne in 2016, to GH¢12,800 per tonne in 2022, a significant increase of sixty-eight per cent (68%). This has had an adverse impact on COCOBOD’s financial performance,” he said.
Acknowledging that the sustainability of the entire cocoa industry hinges on a well-remunerated producer, who is willing to invest in business only with the certainty that the government will pay the appropriate price, the President stated that the government, in keeping with its promise to cocoa farmers has increased the producer price.
According to President Akufo-Addo, the government has “increased cocoa prices from GH¢12,800 per ton to GH¢20,943 per ton, or GH¢1,308 per bag.
“That price is seventy-point-five percent (70.5%) of the Gross FoB price, and is equivalent to $1,821 per ton.”
This, the President indicated,” is the highest price to be paid to cocoa farmers across West Africa in some 50 years.
With the predicted stable prices above the $2,600 threshold, the government will continue to honour our farmers with good prices in the years ahead. Indeed, better days are ahead.”
Describing the cocoa landscape as witnessing an unprecedented transformation under his government, President Akufo-Addo noted that the productivity enhancement programmes being implemented by COCOBOD are having a positive impact on productivity, incomes and climate resilience.
COCOBOD, the President said, continues to undertake the rehabilitation of diseased farms free of charge through the programme, explaining that the programme entails a one-off payment of compensation to both the land owner and the tenant farmer and involves cutting, treatment and replanting of the affected farm, and the maintenance of the farm for two years before it is handed over to the farmer.
“In addition to the payment of compensation of GH¢1000 per hectare, paid separately to both land owner and tenant, COCOBOD bears the entire cost of the cutting, treating, replanting and maintenance for two years before it is handed over to the farmer.