Ghana’s farmers could soon enjoy a handsome cocoa price raise, Reuters reported September 2, 2024.
Unconfirmed reports indicate that the country might increase the 2024-25 farm-gate rate by almost 45%, to boost growers’ revenue and deter smugglers.
Farmers could earn 48,000 cedi ($3,062) a tonne or 3,000 cedi ($191.40) per 64 kg bag, beginning September 2024.
The amount is almost equal to the $3,662 a tonne that the Ghana Civil Society requested to reboot stagnant farmers’ income.
The rumored increase however comes short of a demand by cocoa growers in July 2024 of 6,000 cedi ($383) a bag. The per-tonne price is also below the real-time international spot price in futures markets of $6,688.7 on September 4, 2024.
If the increment materializes however, via the Cocoa Board (COCOBOD), it will be the biggest one since an earlier 63% raise.
The last hike was in April 2024 by 58% to 33,120 cedi ($2,113) a tonne for the March-September 2024 mid-crop.
Spot Selling Intent
This news comes just a few days after the Minister of Agriculture suggested that Ghana may resort to spot-selling cocoa. The intention is to bring local export prices at par with international ones.
The country is trying to wriggle off binding contracts that peg prices at the season’s start and deny farmers profits.
It is a custom for the world’s second biggest cocoa-producing nation to affix new prices each September. Notably, in the volatile 2023-24 season when shortage caused worldwide price highs, Ghana revised its producer rates twice.
The shortage of coffee within Ghana saw the government fail to honor some contract terms. Consequently, the country’s cocoa revenue declined by 32.8% to $592.2 million in quarter 1, 2023 below that of quarter 1, 2023. This amount was half that of the three year-average since 2021 of $825.8 million.
Ultimately, by rewarding farmers for their efforts the West African country will be keeping its seasonal promises. For historical bits that may influence any future farm-gate cocoa price raise in Ghana, read on the following statistics.
Farm-Gate Price Statistics of Ghana Cocoa
Ghana’s cocoa bean prices at the farm-gate have been increasing steadily since 2018, per official data from COCOBOD.
2018-2019: In September 2018, Ghana set its producer price at 8,240 cedi ($525.71 per the September 2024 exchange rate) a tonne.
2020-21: the producer price in September 2020 was 10,560 cedi a tonne. This translates to $673.73 using the September 2024 exchange rate.
2021-22: the price remained at 10,560 cedi ( $673.73 at the September 2024 exchange rate) a tonne. This rate mirrored that of the foregoing season, despite falling cocoa prices due to supply increase in the 2021-22 season.
2023-24: in September 2023, COCOBOD increased the farm-gate price to 20,928 cedi ($1335 per the September 2024 exchange rate) a tonne. Then in April 2024, it revised it again to 33, 120 cedi ($2,110 at the September 2024 exchange rate) a tonne.
2024-25: unofficial data by Reuters on September 2, 2024 shows that the 2024-25 farm-gate price could reach 48,000 cedi ($3,062) a tonne.