In a groundbreaking move, the Ghanaian government has announced a significant 45% increase in the producer price of cocoa for the 2024/2025 crop season. This bold decision aims to transform the lives of cocoa farmers, who are the backbone of Ghana’s economy, and curb the scourge of smuggling that has plagued the industry.
Effective immediately, the new price raises the payment for a 64-kilogramme bag of cocoa beans to $192, up from $132, representing a substantial 129% increase from the previous season. This translates to a farm gate price of $3,063 per tonne, a welcome relief for smallholder farmers who have faced numerous challenges in recent years.
Agriculture Minister Bryan Acheampong emphasized the government’s commitment to improving the welfare of cocoa farmers, who account for a significant portion of Ghana’s cocoa production. “This unprecedented price increase demonstrates our dedication to empowering farmers and revitalizing the cocoa sector,” he stated.
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The move comes at a critical time, as international cocoa prices have skyrocketed above $7,000 per tonne due to poor harvests in Ghana and Ivory Coast, the world’s top producers.
By increasing the farm gate price, the government hopes to reduce the incentive for illegal cross-border sales, encouraging farmers to reinvest in their cocoa farms and potentially easing the global supply shortfall.
Ghana’s cocoa sector, which contributes approximately 10% to the nation’s GDP, has faced numerous challenges, including weather conditions, disease, and smuggling.
The government’s proactive approach seeks to address these issues and support the livelihoods of cocoa farmers, who are essential to the country’s economic growth and development.
This price increase is a testament to Ghana’s commitment to its farmers and the cocoa industry as a whole.
By putting farmers first, the government aims to create a more sustainable and equitable cocoa sector, ultimately benefiting the entire value chain.
