President Nana Addo Dankwa Akufo-Addo on Thursday announced a 28 per cent hike in Cocoa Producer Prices for the 2020/2021 crop year.
Thus, effective October 1, 2020, the producer price for cocoa moves from the previous crop year's GHS8,240 to GHS10,560 per metric ton.
A bag of cocoa for the coming season would sell for GHS660 from 2019/2020 producer price of GHS514.
The President made announcement when he launched the Cocoa Rehabilitation Programme at Sefwi Wiawso in the Western-North Region during his three-day working visit.
He told the gathering that “by this new producer price, we have kept faith with our commitment, under the international arrangement with Côte d’Ivoire and global stakeholders, by awarding to our farmers the full US$400 per metric tonne Living Income Differential.
" Ghana and Ivory Coast, who together produce over 60 per cent of the world's cocoa, in the quest to overhaul global cocoa pricing, introduced a US$400 a tonne Living Income Differential (LID) in July last year on cocoa sales for the 2020/21 season.
“By this substantial increase in the producer price, we are also delivering on our 2016 manifesto promise to reward handsomely the hard work of our cocoa farmers and their unequalled contribution to the economy of Ghana over the years,” President Akufo-Addo emphasized.
The President noted that the unstable nature of cocoa prices on the world cocoa market remained one of the biggest challenges to ensuring payment of decent farm-gate prices to cocoa farmers.
He was not happy that Ghanaian and Ivoirian cocoa farmers earned a meagre US$6 billion from a global chocolate industry of over 100 billion dollars.
“Government believes that value-addition to our cocoa, and the search for new markets, will make us more money than all the aid given to us by all the donor countries.
"We shall gain some dignity and spare the donors the fatigue we have all heard about,” he added.
President Akufo-Addo was gratified that the Strategic Partnership between Cote d’Ivoire and Ghana, which is manifesting itself in a joint cocoa production and marketing policy, was already paying dividends.
“Today, I am happy to announce that Ghana and Cote d’Ivoire are receiving a Living Income Differential of US$400 per ton of cocoa, which is an additional earning from the world market price for our farmers.
"The Living Income Differential is going to guarantee some stability to the producer price of cocoa and sustainability of the industry in Ghana and Cote d’Ivoire,” the President said.