By Joshua Worlasi AMLANU &Ebenezer Chike Adjei Njoku
The Ghana Cocoa Board (COCOBOD) has announced a significant increase in the price of cocoa for the 2024-2025 season, pegging the price at GH¢48,000 per tonne.
This translates to GH¢3,000 per 64-kilogram bag of cocoa, marking an unprecedented 129.36 percent increase from the previous season.
The announcement was made by the Minister for Food and Agriculture, Bryan Acheampong, during a press briefing, where he emphasised the importance of the new price to the livelihoods of cocoa farmers and the future of the cocoa industry.
Mr. Acheampong highlighted that the decision was made after careful analysis of the global cocoa market, which has experienced significant fluctuations in prices over the past year.
“The world market price of cocoa has witnessed the highest levels of volatility over the past 12 months,” Mr. Acheampong said.
He explained that spot prices for cocoa had risen dramatically from US$2,000 per tonne in March 2023, peaking at US$12,000 per tonne in February 2024, before falling to US$7,960 per tonne in September 2024. On the futures market, prices followed a similar pattern, rising from US$2,200 to over US$10,000 per tonne in February 2024, before dropping to US$6,246 in September.
Mr. Acheampong stressed that these market conditions necessitated a thorough review before any pricing decisions were made, adding: “The severe highs and lows of prices are indicative of a market and sector that requires careful analysis before making any pricing decisions”.
The significant increase in the producer price of cocoa demonstrates the government’s commitment to improving the cocoa sector and supporting the livelihoods of Ghanaian cocoa farmers.
“This appreciable increment in the producer price of cocoa signifies government’s commitment to improve the sector and the livelihoods of the Ghanaian cocoa farmer,” Mr. Acheampong remarked, officially declaring the 2024-2025 cocoa season open.
The new pricing comes as Ghana, the world’s second-largest cocoa producer, continues to face challenges related to market volatility and external competition. In April 2024, the country had already raised the price of cocoa by over 58 percent for the mid-season crop, bringing the price to GH¢33,120 per metric tonne, or GH¢2,070 per 64-kilogram bag.
This move was seen as essential in aligning Ghana’s prices with neighbouring Côte d’Ivoire, the top global cocoa producer, in an effort to curb cross-border smuggling—a long-standing issue in the region.
Côte d’Ivoire has yet to announce its farmgate price for the 2024-2025 season, but many industry insiders believe that Ghana’s current price adjustment will influence its decision. Price parity between the two countries is crucial for maintaining market stability and preventing the illegal movement of cocoa across borders.
Despite the positive news on pricing, COCOBOD has revised its production target for the 2024-2025 season downward by nearly 20 percent. The initial projection of 810,000 metric tonnes has been reduced to 650,000 metric tonnes due to the impact of an unusual dry spell that has affected several cocoa-growing regions, particularly in the Bono and Western North Regions.
The minister indicated that the ongoing dry weather in West Africa has created challenging conditions for cocoa farmers, noting that while cloud cover is present, the expected rainfall has not materialised.
In response to these difficulties, COCOBOD is taking steps to mitigate the impact on production. The CEO outlined plans to replace ageing cocoa trees and provide farmers with the necessary fertilisers and technical assistance to improve yields. Over the next six years, COCOBOD aims to boost cocoa production by over 200,000 metric tonnes, with the long-term goal of strengthening the industry and making it more resilient to climate-related challenges.
The 2024-2025 cocoa price as well as associated margins, rates and fees take effect from Wednesday, September 11, 2024.
