Market reports say the world market price of cocoa has witnessed the highest levels of volatility over the past 12 months.
64 Kg bag of cocoa sells at GH¢3,000.00.
In an unprecedented move, the government has increased the producer price of cocoa by over 129 per cent. The new price takes effect from Wednesday, Sept 11, 2024.
According to the Food and Agriculture Minister, Dr. Bryan Acheampong, who announced the new cocoa producer price, the increase is unprecedented in the country's history.
"We are pleased to announce that the producer price of cocoa for the 2024/25 season is GH¢48,000.00 per tonne or GH¢3,000.00 per 64kg bag. On an inter-season basis, it has been increased from GH¢20,928.00 per tonne or GH¢1,308.00 per 64Kg bag at the opening of 2023/24 season to now GH¢48,000.00 per tonne or GH¢3,000.00 per 64 Kg bag. This is an unprecedented increase of 129.36 per cent", Dr Acheampong said.
The Minister stated that, "The cocoa farmers are guaranteed this amount for the entire Season, safeguarding them against the volatility of cocoa prices on the international market. This will ensure that they are less affected by any declines in cocoa prices on the international market that may occur.
The Food and Agriculture Minister said, "To ensure that our cherished cocoa farmers receive the full benefits of the price increase, the government will continue to support initiatives such as the fertilizer application programme, pruning exercise, mass spraying, pollination, the Cocoa Rehabilitation Programme to make cocoa and supply of certified planting materials that are drought tolerant, early bearing and high-yielding farming profitable".
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"The increased producer price will stimulate the local economies of the cocoa-producing areas. Farmers and their families will spend their additional income on goods and services in their local communities, which will have multiplier effect on the local economy", he indicated.
Market reports say the world market price of cocoa has witnessed the highest levels of volatility over the past 12 months. Spot prices moved from around US$2,000/ton in March 2023, peaked at US$12,072/ton in February 2024 before dropping significantly to US$7,960/ton in September 2024.
On the futures market, where Ghana has traded for over 50 years, prices moved from $2,200 in March 2023 to over $10,000 in February 2024 before dropping significantly to $6,246 in September 2024.
