Government Increases Price Of Cocoa By 21%

For the crop year 2022–2023, the government has increased the producer price of cocoa by 21%.

This results in a GHC12.800 per metric tonne increase above the previous GHC10,560. On Friday, October 7, 2022, the new pricing becomes effective.

At a press conference in Accra, Dr Owusu Afriyie Akoto, the minister of food and agriculture, revealed the pricing.

89.99 per cent of the net FOB value is represented by the producer price. According to this calculation, each bag weighing 64 kg would cost GHC 800.

He said that the government's determination to guarantee farmers a respectable income and make cocoa cultivation profitable was evidenced by the 21% increase in the producer price of cocoa.

According to the Minister, the Government will keep putting policies into place to create a strong, resilient, and sustainable cocoa sector that will benefit cocoa farmers and the communities in which they live.

He said that the government will start providing a respectable standard of life for retired Ghanaian cocoa farmers.

The Cocoa Farmers Pension Scheme will transition from its pilot phase to its implementation phase in November 2022.

According to Dr Akoto, the Committee also authorized the rates and fees for all other supply chain participants.

These expenses include the Hauliers' rate, the Buyers' margin, the cost of warehousing and internal marketing, as well as the price of pest control, grading and sealing, and scale inspection.

He said that the government will keep helping cocoa producers by mass spraying for pests and illnesses and rehabilitating infected cocoa crops.

According to him, the government would also help cocoa producers by making the necessary products, like fertilizers, accessible for them to purchase in order to raise agricultural output.

The Minister stated that the Government was committed to keeping up the supply of high-yielding, early-bearing, approved planting supplies that can withstand drought.

According to him, the European Union will soon pass laws requiring due diligence on deforestation and forest degradation, which would impose a heavy burden on the nation to guarantee that cocoa was grown responsibly in Ghana.

Deforestation and forest degradation issues continue to be crucial for fulfilling EU due diligence standards, he added.

He said that the government was still committed to preventing child labour and deforestation in the production of Ghanaian cocoa.

According to Dr Akoto, the government was creating the Cocoa Management System (CMS) under COcOBOD to help Ghana adhere to EU due diligence standards.

Once finished, the CMS will provide a legally required traceability system that is both open and responsible on a national level.

This will guarantee that all Ghanaian cocoa beans can be traced back to their source land from the port of shipping.

According to him, the European Union's due diligence regulations make this a crucial necessity.