The producer price of cocoa been increased by the government by 21%, from GHC10,560 per tonne to GHC12,800.00 per tonne.
The producer price is 89.99% of the net FOB value.
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What then is FOB Value/Price?
FOB Value means Free On Board Value. The FOB (Free On Board) price is the price of goods at the frontier of the exporting country or price of a service provided to a non-resident. It includes the values of the goods or services at the basic price, the transport and distribution services up to the frontier, the taxes minus the subsidies.
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This amount translates into GH¢800 per bag of 64 kg gross weight and will be in effect from Friday, 14th October, 2022.
Although the price has increased by 21%, it is still less expensive than the record-breaking cocoa producer in the neighbouring Ivory Coast, which set its price at 900 CFA francs ($1.36) per kilogramme on September 30. This creates a risk that cocoa will be smuggled across the border and sold for a higher price.
“The 21% rise in the producer price of cocoa is a testament to Government’s resolve to ensure farmers earn a decent income and make cocoa farming lucrative. Government will continue to implement initiatives to build a robust, resilient and sustainable cocoa industry where cocoa farmers and their communities will thrive.
“To ensure a decent standard of living for Ghanaian cocoa farmers after retirement, Government will from November 2022 move from the pilot phase to the implementation phase of the Cocoa Farmer’s pension scheme.
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“The Scheme remains an unprecedented achievement under His Excellency Nana Addo Danquah Akufo Addo,” a statement issued by the Minister of Food and Agriculture, Dr Owusu Afryie Akoto said on Wednesday October 5.
The full press release is shown below;
REVIEW OF THE PRODUCER PRICE OF COCOA FOR THE 2022/23 COCOA SEASON WEDNESDAY, 5TH OCTOBER 2022
Introduction
The Producer Price Review Committee (PPRC), under the Chairmanship of Hon. Dr. Owusu Afriyie Akoto, met and agreed on the Producer Price of Cocoa for the 2022/2023 season which opens, Friday, 14th October, 2022.
Producer Price
We are pleased to announce that Government has increased the producer price of cocoa by 21% from GH¢10,560 per tonne to GH¢12,800.00 per tonne. The producer price represents 89.99% of the net FOB value. This figure translates into GH¢800 per bag of 64 kg. gross weight and takes effect from Friday, 14th October, 2022.
The 21% rise in the producer price of cocoa is a testament to Government’s resolve to ensure farmers earn a decent income and make cocoa farming lucrative. Government will continue to implement initiatives to build a robust, resilient and sustainable cocoa industry where cocoa farmers and their communities will thrive.
To ensure a decent standard of living for Ghanaian cocoa farmers after retirement, Government will from November 2022 move from the pilot phase to the implementation phase of the Cocoa Farmer’s pension scheme. The Scheme remains an unprecedented achievement under His Excellency Nana Addo Danquah Akufo Addo.
Other Rates and Fees
The Committee has also approved the rates and fees for all other stakeholders in the supply chain. These include the Buyers’ margin, Hauliers’ rate, warehousing and internal marketing costs, as well as, fees for disinfestation, grading and sealing and scale inspection.
Government Support and Commitment
Government will continue to support cocoa farmers through the pests and diseases control programme (Mass Spraying) and rehabilitation of diseased cocoa farms. Government will also assist cocoa farmers by making the requisite inputs such as fertilizers available for farmers to buy to increase farm productivity. Government is committed to continuing to supply certified planting materials that are drought tolerant, early bearing and high-yielding.
Ladies and Gentlemen, as you may be aware, the European Union will soon legislate Regulations on due diligence on Deforestation and Forest Degradation. This places enormous responsibility on us to ensure that cocoa is sustainably produced in Ghana. Issues of deforestation and forest degradation remain important in meeting the EU due diligence requirements.
Government has not relented in ensuring that cocoa produced in Ghana is free from deforestation and child labour. Government through COCOBOD is developing the Cocoa Management System (CMS) to enable Ghana to meet the EU due diligence requirements.
Once completed, the CMS will establish a national mandatory traceability system which will be transparent and accountable. This will ensure that all Ghana cocoa beans are traceable from the port of shipment to the plot of land that produced the beans. This is a key requirement under the European Union Due Diligence requirements.
I am pleased to inform you that the first component of the CMS, which involves the establishment of a reliable farmer database (farm mapping and enumeration), is expected to be completed by the end of October 2022.
Before I resume my seat, I wish to assure all stakeholders that COCOBOD has made available funds, jute sacks and related logistics for the smooth take-off of the 2022/23 Main Crop Season.
Thank you very much for your attention.
HON. DR. OWUSU AFRIYIE AKOTO ,
MINISTER OF FOOD AND AGRICULTURE
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Government increases cocoa prices by 21%.
