The President of the Republic, Nana Addo Dankwa Akufo-Addo, on Saturday September 9, announced GH¢1,308 the new producer price per bag of cocoa at an event in Tepa, in the Ashanti Region.
President Akufo-Addo said at the event that until recently, international prices of cocoa had been very low, which was made worse by COVID-19. He also said that despite this, COCOBOD and the government have been making the very hard decision to raise the price of cocoa for producers.
“Cocoa prices have increased from seven thousand, six hundred cedis (GH¢7,600) per tonne in 2016, to twelve thousand, eight hundred cedis (GH¢12,800) per tonne in 2022, a significant increase of sixty-eight percent (68%). This has had an adverse impact on COCOBOD’s financial performance,” H.E Akufo-Addo said.
The President stated that the government has increased the producer price in accordance with its promise to cocoa farmers. He acknowledged that the sustainability of the entire cocoa industry depends on a well-paid producer who is willing to invest in business only with the assurance that the government will pay the appropriate price.
According to President Akufo-Addo, Government has “increased cocoa prices from twelve thousand, eight hundred cedis (GH¢12,800) per ton, to twenty thousand, nine hundred and forty-three cedis (GH¢20,943) per ton, or one thousand, three hundred and eight cedis (GH¢1,308) per bag. That price is seventy-point-five percent (70.5%) of the Gross FoB price, and is equivalent to one thousand, eight hundred and twenty-one dollars ($1,821) per ton.”
“This is the highest price to be paid to cocoa farmers across West Africa in some fifty (50) years. With the predicted stable prices above two thousand, six hundred United States dollars (US$2,600) threshold, Government will continue to honour our famers with good prices in the years ahead. Indeed, better days are ahead.”
Portraying the cocoa scene as seeing an uncommon change under his administration, President Akufo-Addo noticed that the efficiency upgrade programs being carried out by COCOBOD are emphatically affecting efficiency, livelihoods and environment versatility.
The President stated that COCOBOD continues to carry out the free rehabilitation of diseased farms through the program. He explained that the program involves cutting, treating, and replanting the affected farm, as well as maintaining the farm for a period of two years prior to handing it over to the farmer, and that it involves making a one-time payment of compensation to both the landowner and the tenant farmer.
“In addition to the payment of compensation of one thousand cedis (GH¢1000) per hectare, paid separately to both land owner and tenant, COCOBOD bears the entire cost of the cutting, treating, replanting and maintenance for two (2) years before it is handed over to the farmer. Compensation paid to both landlords and famers stands at one hundred and twelve million six hundred and eight-six thousand, and forty cedis (GH¢112,686,040) as at September 2022,” he said.
The President pointed out that COCOBOD has also implemented a Contributory Scheme for cocoa farmers as part of the brand-new Three-Tier Pension Scheme. The enrollment process has begun and will continue, clearing the way for farmer and COCOBOD contributions in the upcoming season.
He stated that COCOBOD is anticipated to contribute $74.5 million (GH74.5 million) to the fund this year.
Again, he said,
“The Scheme will enable cocoa farmers also to save towards their retirement, so as to guarantee income security, improved living standards in their old age, and motivate the youth to venture into cocoa farming”.
President Akufo-Addo continued,
“This is the first successful attempt to give effect to section 26(1) of the Ghana Cocoa Board Act, 1984, PNDCL 84, which provides for the setting up of the Scheme. This has been made possible because of the implementation of the cocoa management system, which has provided the needed data and digital foundation for the Scheme to be successful.”
Following the adoption and implementation of the Living Income Differential (LID), he continued that cooperation in the cocoa industry between Ghana and Cote d’Ivoire has already resulted in positive outcomes for the industry.
“The LID is an additional amount of four hundred United States dollars ($400) per ton on the price of cocoa, paid on every ton of cocoa purchased from Ghana and Cote d’Ivoire. The LID is paid fully to the farmers, as a cushion to adverse effects of low international prices of cocoa. The LID has increased the average farmers’ income by seven hundred United States dollars ($700) per ton. It is the first successful attempt by producer countries to influence incomes of cocoa famers through an international pricing mechanism,” he added.
The President stated that the government has also implemented a digitisation program to digitize all sector operations, improve traceability, and facilitate efficient domestic supply chain management through the capture of farm and farmer information, including the physical conditions of farms and the characteristics of farmer households.
Under the industrialisation drive, he indicated that “value addition in the cocoa industry has increased significantly, from thirty percent (30%) of annual output in 2016 to forty-eight percent (48%) in 2022. The target of processing fifty percent (50%) of the production locally is within immediate reach.”
He continued,
“The promotion of domestic consumption is also beginning to yield results. Domestic enterprises have emerged strongly under the 1D1F initiative for the processing and manufacturing of various cocoa based products across the Districts. COCOBOD has taken a giant step to support small scale and artisanal chocolate manufacturing with business-friendly guidelines that provide access to premium Ghanaian beans, even at the district level.”
Through these innovations, President Akufo-Addo noted that some one hundred and thirty thousand (130,000) jobs have been created, reiterating that “Government will, through COCOBOD, continue to adopt innovations aimed at improving the welfare of the Ghanaian farmer through the implementation of productivity enhancement programmes and remunerative producer pricing.”
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
