Cocoa farmers, starting today, Wednesday, September 11, 2024, can expect a new and improved price for their cocoa beans as the government, through the Ministry of Agriculture, has announced a new price of cocoa for the 2024/2025 cocoa season in a bold attempt to improve their lives and living conditions.
The Minister of Food and Agriculture, Bryan Acheampong in an announcement on Wednesday said the new price of cocoa for the 2024/2025 cocoa season effective today will be GH¢48,000.00 per ton or GH¢3,000.00 per 64kg bag.
“We are pleased to announce that the producer price of cocoa for the 2024/25 season is GH¢48,000.00 per tonne or GH¢3,000.00 per 64kg bag,” the Minister announced.
This increase, based on an earlier mid-season adjustment, represents a 45% rise increasing the price per metric tonne to GHC33,120 as earlier reported by The High Street Journal.
However, on an inter-season basis, thus between the 2023/2024 crop season and the 2024/2025 season, the announced increase represents a 129.36% increase which the Minister describes as unprecedented.
Bryan Acheampong explained that “on an inter-season basis, it has been increased from GH¢20,928.00 per tonne or GH¢1,308.00 per 64Kg bag at the opening of 2023/24 season to now GH¢48,000.00 per tonne or GH¢3,000.00 per 64Kg bag.”
The Minister with this announcement touted that the vision of the government for the cocoa sector remains “robust, resilient and sustainable for present and future generations” adding that the upward adjustment is also expected to improve the sector and the livelihoods of the Ghanaian cocoa farmer.
Meanwhile, some analysts believe this increase is also an attempt by the government to curb the smuggling of cocoa to Ghana’s neighbouring countries, especially the world’s leading producer, Ivory Coast where prices are considered competitive considering the disparities in the farmgate prices.
Moreover, controversies have also surrounded how this crop season’s cocoa purchase by the government will be funded. While the CEO of COCOBOD, Joseph Boahen Aidoo earlier announced a break in the 3 decade-old cocoa syndication for local funding, Finance Minister, Dr. Amin Adam later insisted that the cocoa syndication loan has not been abandoned by the government. He added that about US$600 million is expected to be mobilized from external sources.
The CEO later clarified that COCOBOD will implement a self-financing model for the 2024/2025 cocoa crop season adding that this initiative will operate alongside the traditional syndicated loan system.
Economist at the University of Ghana Business School, Prof. Patrick Asuming believes this divergence in policies at the COCOBOD and the Ministry of Finance is a clear indication of the lack of policy direction for the sector by the government.
