Government has increased the producer price of cocoa for the 2020/2021 crop season to GH¢10,560 per metric ton.
This is to take effect from October 1, 2020.
“Nananom, beginning 1st October 2020, I am happy to announce the award of a new cocoa producer price of GH¢10,560 per metric ton, equivalent to GH¢660 per bag for the coming 2020/21 crop year. President Nana Addo Dankwa Akufo-Addo said this on Thursday, 24th September 2020, on day one of the 3-day tour of the Western North Region, when he launched the Cocoa Rehabilitation Programme, in Sefwi Wiawso.
The current 2019/20 producer price of GH¢8,240 per metric ton, i.e. GH¢514 per bag, was an 8.2% increase over the 2018/2019 price of GH¢7,615, i.e. GH¢475 per bag.
“By this new producer price, we have kept faith with our commitment, under the international arrangement with Côte d’Ivoire and global stakeholders, by awarding to our farmers the full four hundred United States dollars per metric ton (US$400/MT) Living Income Differential (LID),” he said.
*Living Income Differential*Touching on the unstable nature of cocoa prices on the world cocoa market, President Akufo-Addo stated that “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 65% of raw cocoa beans used in making chocolates, the President bemoaned the fact that cocoa farmers from the two countries make just US$6 billion from an over $100 billion chocolate industry.
The meager returns that hardworking farmers get from their toil.
This, according to President Akufo-Addo, is the rationale for the Strategic Partnership between Cote d’Ivoire and Ghana, the common initiative of His Excellency President Alassane Ouattara of Cote d’Ivoire and himself, which is manifesting itself in a joint cocoa production and marketing policy, and which is already paying dividends.
Story by Naa Anyema Collison