Ghana is set to increase the state-guaranteed price for its cocoa farmers by nearly 45% for the 2024/25 crop season, according to sources familiar with the price review.
This significant hike aims to improve farmers’ incomes and reduce the smuggling of cocoa beans out of the country.
The world’s second-largest cocoa producer had already raised the farmgate price by over 58% in April, bringing it to 33,120 cedi ($2,123.08) per metric ton, or 2,070 cedi per 64 kilograms, for the remainder of the 2023/24 season. This mid-season adjustment followed Ivory Coast’s decision to increase its farmgate price to 1,500 CFA francs (approximately 40 cedis) per kilogram for the April-to-September period.
A source revealed that Ghana’s cocoa producer price review committee has recommended setting the price at 48,000 cedi per ton, equivalent to 3,000 cedi per 64 kilograms of cocoa, for the 2024/25 season, which is scheduled to start later this month. This decision, reflecting an increase of nearly 45%, is pending cabinet approval.
The second source noted that it is unlikely the cabinet will alter the committee’s recommendation, as any further increase could push Ghana’s cocoa marketing board, Cocobod, into a deficit. Additionally, Ghana’s new price will need to align with the yet-to-be-announced 2024/25 farmgate price in Ivory Coast. The two countries have collaborated to coordinate farmgate prices and cocoa supplies to support the sector and enhance farmers’ incomes.
Cocoa prices have remained strong this year due to disease and adverse weather in Ghana and Ivory Coast, which together supply over 60% of the world’s cocoa. The International Cocoa Organization recently raised its global cocoa deficit forecast for the 2023/24 season to 462,000 tons, predicting a 45-year low in the stocks-to-grindings ratio.
Cocobod had initially planned to launch the 2024/25 season on September 1, with a reduced production target of 650,000 tons, but the start date has been delayed. The earlier opening was intended to curb bean smuggling, driven by low prices and delayed payments to farmers. However, some cocoa farmers and licensed buyers in Ghana have been accused of hoarding beans in anticipation of the proposed price increase.
Ghana is set to increase the state-guaranteed price for its cocoa farmers by nearly 45% for the 2024/25 crop season, according to sources familiar with the price review. This significant hike aims to improve farmers’ incomes and reduce the smuggling of cocoa beans out of the country.
The world’s second-largest cocoa producer had already raised the farmgate price by over 58% in April, bringing it to 33,120 cedi ($2,123.08) per metric ton, or 2,070 cedi per 64 kilograms, for the remainder of the 2023/24 season. This mid-season adjustment followed Ivory Coast’s decision to increase its farmgate price to 1,500 CFA francs (approximately 40 cedis) per kilogram for the April-to-September period.
A source revealed that Ghana’s cocoa producer price review committee has recommended setting the price at 48,000 cedi per ton, equivalent to 3,000 cedi per 64 kilograms of cocoa, for the 2024/25 season, which is scheduled to start later this month. This decision, reflecting an increase of nearly 45%, is pending cabinet approval.
The second source noted that it is unlikely the cabinet will alter the committee’s recommendation, as any further increase could push Ghana’s cocoa marketing board, Cocobod, into a deficit. Additionally, Ghana’s new price will need to align with the yet-to-be-announced 2024/25 farmgate price in Ivory Coast. The two countries have collaborated to coordinate farmgate prices and cocoa supplies to support the sector and enhance farmers’ incomes.
Cocoa prices have remained strong this year due to disease and adverse weather in Ghana and Ivory Coast, which together supply over 60% of the world’s cocoa. The International Cocoa Organization recently raised its global cocoa deficit forecast for the 2023/24 season to 462,000 tons, predicting a 45-year low in the stocks-to-grindings ratio.
Cocobod had initially planned to launch the 2024/25 season on September 1, with a reduced production target of 650,000 tons, but the start date has been delayed. The earlier opening was intended to curb bean smuggling, driven by low prices and delayed payments to farmers. However, some cocoa farmers and licensed buyers in Ghana have been accused of hoarding beans in anticipation of the proposed price increase.
