Ghana’s cocoa regulator plans to increase the state-guarantee payment for cocoa farms by almost 45% for the year 2024/25 crop year.
The decision to review agricultural prices was taken in a bid to boost farmers’ income and stop the smuggling of soybeans abroad.
The Price Committee, which oversees the price hikes, has set the farm for the 2024/25 season at GHc 8,000 per tonne, or GHc 3,000 per 64 kilograms of cocoa, starting September.
Reports say the prices can go beyond 48,000 cedis per tonne or the Ghana Cocoa Marketing Board will fall into the red, adding that the Cabinet is unlikely to overturn the committee’s decision.
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Every September the government announces the new cocoa bag and ton price at the door for the new cocoa season.
In Ghana and Ivory Coast, which provide more than 60% of the world’s cocoa, cocoa prices have soared this year due to disease and poor weather conditions, causing a third shortage in the market.
The two largest coco-growing countries have launched an initiative to align farm prices with cocoa products in a bid to boost the economy and support farmers’ farm income.
The International Cocoa Organisation on Thursday raised its global cocoa deficit forecast for the 2023/24 season (October-September) to 462,000 tonnes and said the working stocks to be land ratio would fall to its lowest level in 45 years.
Cocoa prices have been boosted this year by demand in West Africa, crop diseases and crop failures from climate change.
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Some Ghana cocoa farmers and licensed buyers accused both sides of hoarding beans to benefit from the proposed price hike in the new season
