The producer price of Ghanaian Cocoa is set to increase by 21% for the 2022-2023 crop season, which began October 7th. The new price means that Cocoa farmers in Ghana will now receive GH₵12,800 (circa $1,213.73) per metric tonne, up from GH₵10,560 (circa $1,001.33).
The announcement was made at a press conference in Accra, where Dr Owusu Afriyie Akoto, the Minister of Food and Agriculture, said the price increase was evidence of the government’s commitment to “ensure farmers earn a decent income and make cocoa farming lucrative.”
However, the government can afford to be generous since they are receiving more cedis for each dollar than in recent history. The 5-year dollar to Cedis price shows how much the dollar has appreciated against the Ghanaian currency over the last 12 months. One US dollar now buys 10.45 Cedis as we publish this story.
Cedis to 1 dollar
Other challenges facing Ghana’s Cocoa sector are fears that the younger generation is turning away from Cocoa farming because it is seen as difficult and unrewarding. As Cocoa is such an important commodity for Ghana’s economy, it is in the government’s interest to make Cocoa farming more attractive to the next generation.
The neighbouring country of Côte d’Ivoire also increased the price of Cocoa on 30 September by 9% to 900 CFA francs (circa $1.33) per kilogramme. This is more than the price of Ghanaian Cocoa after the increase. Some have expressed concern that this will encourage cross-border smuggling – a form of Cocoa arbitrage, but Dr Akoto said this problem has always existed and shrugged off the question.
Industry insiders told Reuters that some farmers might be disappointed with the new figures if they had expected them to match Côte d’Ivoire’s new price.
Ghana’s Cocoa production has fallen sharply this year to 689,000 tonnes as of 1 September, previously expected to be 800,000 tonnes. This and concerns about an EU ban on Ghanaian Cocoa (which are disputed by officials) are putting pressure on the country to repay the recently signed $1.13 billion Cocoa syndicated loan.
