The government of Ghana has announced that there will be no change in the producer price of cocoa for the 2017/2018 cocoa season, despite a slump in the price of the commodity on the world market.
This comes as a relief to farmers of the commodity, who had feared the worst due to a sharp fall in the international price of cocoa. On an average, cocoa has traded between $2,100 and $1,800 per tonne since the beginning of this year, compared to an average of $2,900 last year.
Joseph Boahen Aidoo, Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), disclosed that the current producer price has been pegged at GH7,600 on the basis of last year’s average free-on-board per tonne of $2,900.
This implies that about $1,000 has been lost already from the dip in international prices.
He lamented that the fall in cocoa price was driven by oversupply from the Ivory Coast.
Already, there are fears that an increase in production by the Ivory Coast to 1.6 million metric tonnes could muddy the waters further, as the country earlier this year stated its intention to up production.
The COCOBOD has also indicated that government would need about 2 billion Ghana Cedis to purchase cocoa from the farmers on October 1, 2017, but added that the Cocoa Stabilization Fund only has 320 million Ghana Cedis.