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Home National Trends

Cocoa Producer Price Increased to GH¢12,800 per tonne

AgriWatch by AgriWatch
October 6, 2022
in National Trends
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Cocoa Producer Price Increased to GH¢12,800 per tonne
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Government has increased the producer price of cocoa to GH¢12,800.00 per tonne, which translates into GH¢800 per bag of 64 kg. gross weight for the 2022/ 2023 cocoa crop season.

This represents an increase of 21 percent from GH¢10,560 per tonne, taking effect from Friday, October 14, 2022.

Announcing the new cocoa price, Dr. Owusu Afriyie Akoto, Minister for Food and Agriculture, and Chairman of the Producer Price Review Committee (PPRC), said that the new Producer Price of Cocoa represents 89.99 percent of the net freight on board (FOB) value.

“The 21 percent rise in the producer price of cocoa is a testament to government’s resolve to ensure farmers earn a decent income and make cocoa farming lucrative. The government will continue to implement initiatives to build a robust, resilient and sustainable cocoa industry where cocoa farmers and their communities will thrive,” Dr. Afriyie Akoto said.

Last year, government maintained the producer price at Gh¢660 as the farm-gate price for a bag of 64kg of cocoa for the 2021/2022 crop season. This was in spite of the fall in the world market price of cocoa, among other factors, such as the effects of the Covid-19 pandemic on the global economy.

In effect, the decision maintained the producer price at Gh¢10,5600 per tonne, representing 87.15 percent of the FOB value, as a demonstration of its commitment to improving the livelihoods of cocoa farmers.

The minister assured farmers that government will continue to assist cocoa farmers through the mass spraying program to control pests and diseases and the rehabilitation of infected cocoa farms.

In order to boost farm productivity, government will also help cocoa farmers by making necessary inputs like fertilizers available for purchase. Government is committed to continuing to offer high-yielding, early-bearing, and drought-tolerant planting materials that have received certification.

“Government will also assist cocoa farmers by making the requisite inputs such as fertilizers available for farmers to buy to increase farm productivity. Government is committed to continuing to supply certified planting materials that are drought tolerant, early bearing and high yielding,” he said.

To help country comply with EU due diligence requirements, government is developing the Cocoa Management System (CMS) through COCOBOD.

This, the minister noted that the government is still committed to preventing child labor and deforestation from occurring during the production of Ghanaian cocoa.

After its completion, the CMS will create a legally binding national traceability system that will be open and accountable. By doing this, it will be possible to trace every single batch of Ghanaian cocoa beans back to the farm where they were grown. According to the EU’s due diligence requirements, this is a crucial requirement.

“Once completed, the CMS will establish a national mandatory traceability system which will be transparent and accountable. This will ensure that all Ghana cocoa beans are traceable from the port of shipment to the plot of land that produced the beans. This is a key requirement under the European Union Due Diligence requirements,” he said.

“I am pleased to inform you that the first component of the CMS, which involves the establishment of a reliable farmer database (farm mapping and enumeration), is expected to be completed by the end of October 2022,” the minister stated.

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