Ghana Cocoa Board (COCOBOD) announced a significant increase in cocoa price for the 2024-2025 season, pegging it at GH¢48,000 per tonne.
This translates to GH¢3,000 per 64-kilogramme bag of cocoa, marking an unprecedented 129.36 percent increase from the previous season.
Minister for Food and Agriculture Bryan Acheampong made the important announcement last week and stressed the new price’s importance to livelihoods of cocoa farmers and the cocoa industry’s future.
The decision was made after careful analysis of the global cocoa market, which has experienced significant fluctuations in prices over the past year.
Mr. Acheampong 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. These market conditions necessitated a thorough review before any pricing decisions were made.
The significant increase in producer price of cocoa demonstrates government’s commitment to improving the cocoa sector and supporting Ghanaian cocoa farmers’ livelihoods.
As the world’s second-largest cocoa producer, the country’s cocoa sector 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-kilogramme 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.
Although Côte d’Ivoire has yet to announce its farmgate price for the 2024-2025 season, 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 illegal movements of cocoa across borders.
Despite the above, COCOBOD has revised its production target for the 2024-2025 season downward by nearly 20 percent.
