Cocobod Announces Up to 50% Increase in Cocoa Farmgate Price

Ghana’s Cocoa Board (Cocobod) has unveiled plans to boost the fixed farmgate price paid to cocoa farmers by as much as 50%, aiming to align with soaring global prices and combat bean smuggling, according to a Cocobod spokesperson on Wednesday.

The decision comes in response to the dramatic rise in cocoa prices, which have surged more than threefold over the past year due to disease outbreaks and adverse weather conditions in Ghana and neighboring Ivory Coast, the world’s two largest cocoa producers.

Despite the significant spike in global cocoa prices, the official farmgate prices in Ghana and Ivory Coast have yet to reflect this upward trend.

Presently, Ghana’s state-guaranteed cocoa price stands at ¢20,943 ($1,574.66) per tonne, translating to around ¢21 per kilogram.

In a move mirroring this development, Ivory Coast recently increased its farmgate price to 1,500 CFA francs ($2.47) per kilogram for the April-to-September mid-crop of the 2023/24 season, up from 1,000 CFA francs in the previous season.

Fiifi Boafo, Cocobod’s head of public affairs, hinted that the new cocoa farmgate price in Ghana could be announced imminently, potentially within the week, though declined to provide further details.

A cocoa exporter, speaking on condition of anonymity, revealed that the Minister of Food and Agriculture would convene a meeting with cocoa sector stakeholders on April 3, 2024, to discuss the proposed price increment.

However, while the proposed increase has been met with anticipation by licensed cocoa buyers in Ghana, some express concerns over the potential escalation in operational costs.

Ghana’s cocoa sector has grappled with numerous challenges in recent years, including adverse weather conditions, smuggling, and disease outbreaks, resulting in a nearly 40% shortfall in cocoa production during the 2023/24 season.

Cocobod reported significant losses of cocoa beans to smuggling and illegal gold mining, known locally as “galamsey,” during the 2022/23 season, and anticipates even greater losses this season as surging global cocoa prices provide added incentive.

Additionally, the regulator highlighted the detrimental impact of cocoa swollen shoot virus, which has ravaged cocoa farmland, resulting in the loss of approximately 590,000 hectares between 2018 and February 2024.

With the anticipated increase in cocoa farmgate prices, Cocobod aims to bolster cocoa farming communities and fortify Ghana’s position as a key player in the global cocoa market amidst evolving challenges and opportunities.