Ghana Boosts Cocoa Prices by 45% for 2024/25 Season
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Loading... - Grace Abeasi
- 12 Sep 2024
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Ghana has announced a significant increase in the guaranteed price paid to cocoa farmers for the 2024/25 season, aiming to boost farmer incomes and combat bean smuggling. The price has been adjusted to 48,000 cedis per tonne, or 3,000 cedis for every 64 kg of cocoa, representing a 45% increase.
The decision comes after neighbouring Ivory Coast, the world's leading cocoa producer, raised its farmgate price for the April-to-September mid-crop. Ghana's price increase is pending cabinet approval but is expected to align with Ivory Coast's yet-to-be-announced 2024/25 price. Both nations have established a joint initiative to coordinate cocoa prices and supplies to support the industry and improve farmer livelihoods.
Reasons for the Price Increase
Global cocoa prices have surged due to disease and unfavourable weather conditions in Ghana and Ivory Coast, which collectively supply over 60% of the world's cocoa. This has led to a third consecutive market deficit. The International Cocoa Organisation (ICO) recently revised its global cocoa deficit forecast for the 2023/24 season to 462,000 tonnes, predicting a 45-year low stocks-to-grindings ratio.
Impact on Farmers and the Industry
The price increase is expected to benefit cocoa farmers in Ghana, who have been struggling with low prices and delayed payments. However, some farmers and licensed buyers have been accused of hoarding beans in anticipation of the new season's price increase. The earlier opening of the 2024-2025 season, initially scheduled for September 1st, may be delayed due to these concerns.
Challenges Ahead
While the price increase is a positive step, Ghana's cocoa industry still faces challenges, including bean smuggling and low output targets. Cocobod, Ghana's cocoa marketing board, had originally scheduled a lower output target of 650,000 tonnes for the 2024-2025 season. The industry will need to address these challenges to ensure a sustainable and profitable future for cocoa farmers and stakeholders.
