President Nana Addo Dankwa Akufo-Addo declared an unprecedented increase in the price at which the Ghanaian government purchases cocoa from farmers, setting a historic milestone in the country’s cocoa industry.
The new price, raised from GH¢800 to GH¢1,308 per 64-kilogram bag, is not only a financial boon for farmers but also a strategic move to combat challenges such as smuggling and illegal mining that have plagued the sector.
Addressing a gathering of cocoa farmers and local chiefs in Tepa, in the Ashanti Region, President Akufo-Addo proudly stated that the new price “is the highest to be paid to cocoa farmers across West Africa in over 50 years.”
This remarkable increase reflects the government’s dedication to the welfare of Ghana’s cocoa farmers.
The timing of the announcement is strategic. The government decided to commence the cocoa season in September, a month earlier than usual, to coincide with the period when farmers send their children to school.
This decision enables cocoa sales to finance educational expenses rather than resorting to borrowing at higher interest rates.
The news was met with jubilation from cocoa farmers present at the event, who spontaneously applauded and celebrated. Their enthusiasm even led to an interruption in the President’s speech as they attempted to express their gratitude.
One of the critical issues addressed by this price hike is cocoa smuggling. The depreciating value of the Ghanaian cedi had driven some farmers to smuggle their produce into neighboring countries like Cote d’Ivoire or Togo, where they could fetch better prices.
The increased producer price aims to curb this practice and ensure that cocoa remains a vital contributor to the nation’s economy.
Furthermore, the government acknowledges the adverse impact of increasing the producer price in the face of low international market prices, but President Akufo-Addo emphasized the importance of well-remunerated cocoa producers who are willing to invest in the business.
The cocoa industry is undergoing transformation under the current administration, marked by productivity-enhancing interventions and projects aimed at improving income and climate resilience. The Minister of Food and Agriculture, Dr. Bryan Acheampong, has pledged to tackle smuggling and illegal mining, both of which threaten the sustainability of the cocoa sector.
COCOBOD CEO Joseph Boahen Aidoo also highlighted the importance of traceability, as the European Union will soon ban cocoa beans that cannot be traced. Ghana is already preparing for compliance through the Cocoa Management System, which registers cocoa farms and farmers.
As the cocoa industry steps into another season, the increase in the producer price and ongoing efforts to address challenges signify a promising future for cocoa farmers and the cocoa sector as a whole.
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