Although cocoa farmers welcome the recent upward adjustment in cocoa prices by the government, the rate of increase has been widely rejected by farmers. The farmers feel the government could have done better with respect to the rate of increase.
The recent marginal increase is the second upward adjustment in the last three months. President Akufo-Addo on Friday, November 8, 2024, announced a further increase in the producer price of cocoa from GH¢48,000 to GH¢49,600 per tonne for the 2024/2025 cocoa season.
This increment follows a significant adjustment in September when there was a remarkable 129.36% increase resulting in a tonne of cocoa being bought from farmers at GH¢48,000.
But the farmers believe the recent increment resulting in a about 3.33% increase in a bag of cocoa from GH¢ 3000 to GH¢ 3100 is woefully inadequate.
National President of Ghana Cocoa Farmers Cooperative Association, Issifu Issaka maintains that given the current prevailing conditions, the government could have gone beyond the rate of increase.
He explains that cocoa is currently selling at around $7000 per tonne and Ghana is not doing forward sales this year. This Issaka explains that Ghana is currently selling its cocoa beans on the spot market at the prevailing rate in the absence of forward sales.
With the prevailing high price on the international market, just a paltry 3.3% increase on a bag of cocoa, the National President of Cocoa Farmers Cooperative believes is far below the belt although they welcome the increase in general.
“Cocoa farmers welcome the news and we think it is in the right direction,” Issifu Issaka said in an interview monitored by The High Street Journal.
He however contended that, “knowing what is happening today, we thought the government could have increased the price more than what we are seeing today. This year for instance we know that the government is not doing forward sales. Ghana as a country is doing spot market. It means that the availability of beans that we have is what we are selling at the current prevailing price and cocoa is trading around $7000.”
“If you are paying GH₵ 3100, if you break it down to the farmgate price, cocoa farmers are taking below 50% but we have the President saying that the government is committed to paying 70% of gross FOB (Free On Board) to cocoa farmers. Today, 70% of gross FOB should be around 5500. I think the government could have done better than what we have now,” he insisted.
