By Ezekiel David
Ghana plans to increase the guaranteed price paid to cocoa farmers by almost 45% for the 2024/25 season, aiming to boost farmer incomes and combat bean smuggling.
The price has been adjusted to 48,000 cedis per tonne, or 3,000 cedis for every 64 kg of cocoa. For the remainder of the 2023–2024 season, this comes after a mid-season price increase of more than 58% to 33,120 cedis per tonne in April 2024.
The decision comes after neighbouring Ivory Coast, the world’s leading cocoa producer, raised its farmgate price for the April-to-September mid-crop.
Ghana’s price increase is pending cabinet approval but is expected to align with Ivory Coast’s yet-to-be-announced 2024/25 price. Both nations have established a joint initiative to coordinate cocoa prices and supplies to support the industry and improve farmer livelihoods.
“The price could not be increased beyond 48,000 cedis per tonne without pushing Cocobod, Ghana’s cocoa marketing board, into a deficit,” an anonymous source stated.
Global cocoa prices have surged due to disease and unfavourable weather conditions in Ghana and Ivory Coast, which collectively supply over 60% of the world’s cocoa. This has led to a third consecutive market deficit. The International Cocoa Organisation (ICO) recently revised its global cocoa deficit forecast for the 2023/24 season to 462,000 tonnes, predicting a 45-year low stocks-to-grindings ratio.
With a lower output target of 650,000 tonnes, Cocobod had originally scheduled the 2024–2025 season to begin on September 1st. However, sources suggest a later launch is now expected.
The earlier opening was intended to curb bean smuggling fuelled by low prices and delayed payments. However, some farmers and licensed buyers have been accused of hoarding beans in anticipation of the new season’s price increase.
(Source: Reuters)