The producer price of cocoa will remain at GH¢7,600.00 per tonne. This is based on the government’s decision to maintain the price (used during the 2016/17 season) for the 2017/18 season.
The price which is equivalent to GH¢475 per 64 kilogram gross weight bag takes effect from Friday -13th October, 2017 – officially marking the beginning of the new crop season.
Making the disclosure to the media - Minister of Food and Agriculture as well as Chairman of the Producer Price Review Committee, Dr Owusu Afriyie Akoto, said they decided to maintain the price despite the general decline in cocoa prices on the international market.
Cocoa prices on the global market has in recent months been on a rapid decline notably, hitting a ten year low of $1,900 from a peak of $3,000 per tonne – a development that has forced some cocoa producing countries to cut the producer prices paid to farmers.
The Minister expressed concern over the devastating effect the international price fall on the economy with government losing an estimated $1.1 billion annually in potential cocoa export or sales revenue.
"The huge drop in the world price of cocoa has reduced revenues to an extent that the stabilization fund is not enough to cushion farmers and other stakeholders in the domestic value chain. Therefore, government has sacrificed its share of Free on Board (export duty) in order to keep the producer price at GH¢7,600 per tonne," he said.
In addition, Dr Akoto pointed out that the Committee approved other rates and fees for stakeholders with margins, rates and charges that experienced reductions over last year’s levels due to the price drop.
Highlighting some measures adopted to boost production and sales revenue, Dr. Akoto said the government has launched initiatives such as, hand pollination and small scale irrigation in cocoa farms; rehabilitation and replanting of over-aged cocoa farms as well as those affected by the swollen shoot virus disease, among others.
He reiterated government’s effort in working to accelerate the processing, utilization and consumption of cocoa in Ghana.