A delegation from Kenya led by the country’s High Commissioner to Ghana, H. E. Eliphas Mugendi Barine, has paid a visit to the Chief Executive of Ghana Cocoa Board (COCOBOD) to abreast themselves with the evaluating component planned by COCOBOD for the payment of a profitable producer price to cocoa farmers in Ghana.
H.E. Barine said Ghana’s cocoa price formula gives an incredible model designing Pricing plans for cash crops sent out by other African nations.
According to the High Commissioner, following the case of Ghana, the National Technical Working Committee for the Design, Development and Implementation of a Price Stabilization system of his country’s Ministry of Agriculture, Livestock, Fisheries and Cooperatives had come to find out about Ghana’s modalities at deciding cocoa prices.
He was hopeful that the communications between them and Ghana will empower the team of specialists liable for Tea Price Stabilization in Kenya to procure additional information to improve their pricing mechanism using the Ghanaian system as a benchmark.
The CEO of COCOBOD Joseph Boahen Aidoo, in a welcome speech said he was happy at the visit and praised the long-standing relations among Ghana and Kenya in the space of trade and agribusiness.
Clarifying how cocoa prices are shown up at, Hon Aidoo said the prices are dictated by the Producer Price Review Committee (PPRC), a free body which involves delegates of cocoa farmers, the scholarly community, authorized cocoa purchasing organizations, carriers of cocoa, the Ministry of Food and Agriculture, the Ministry of Finance, among others.
The PPRC works with a Technical Committee set up by the Management of COCOBOD to show up at a price that is sensible, level headed and reasonable for guarantee that cocoa farmers are generously compensated.
Mr Joseph Boahen Aidoo said, as a strategy, cocoa farmers in Ghana partake in a guaranteed cocoa price of at least 70% of the Free On Board (FOB) price of cocoa. The team takes a look at other parameters which include exchange rate, operational costs among others. And they do this painstakingly to arrive at the best price to safeguard Ghana’s farmers against price volatility.
Hon Aidoo also took advantage to portray the original Living Income Differential (LID) pricing mechanism as extra mediation by both Ghana and Cote d’Ivoire to additional pad the livelihoods of cocoa farmers in the two countries.
“Through the institution of the LID, a US$400 additional sum on each ton of cocoa sold is paid straightforwardly to the cocoa farmers to upgrade their livelihoods,” he expressed.
Approving the LID, the High Commissioner, H.E. Barine, commended the additional mile by Ghana and Cote d’Ivoire to ensure the work and efforts of farmers through upgraded income and said the component merits considering by his country.