Ghana’s President Nana Akufo Addo has reiterated that his government would ensure that producer prices for cocoa remained unchanged for the upcoming 2017/18 season beginning this month. This would effectively mean maintaining prices for farmers above those in neighbouring Ivory Coast.
This would effectively mean maintaining prices for farmers above those in neighbouring Ivory Coast, their closest competitors.
“The price review for the coming season will not leave cocoa farmers short-changed. The government will make sure that the producer prices remain unchanged,” he said at a cocoa conference held in Kumasi on Monday.
Ghana, the world’s second-largest cocoa producer has kept the price at which it buys beans from farmers at $1,914 per tonne since a year ago, creating a large price gap with its neighbour Ivory Coast which holds the number one spot.
At the weekend, Ivory Coast set the farmer price at the same level of last season’s mid-crop but below growers’ expectations, raising concerns about cross-border smuggling.
Ghana’s 2017/18 cocoa season opens on October 13 and Ivory Coast’s opened on October 1.
Meanwhile, earlier this year, Ivory Coast cocoa regulator expressed concerned that Ghana’s higher prices for farmers, could lead to smuggling of beans into the Ghanaian market, which could affect revenue forecasts.