Ghana has raised the farmgate price for cocoa farmers to 49,600 Ghanaian cedi ($3,062) per metric ton, up from the initial 48,000 cedi announced at the start of the 2024/25 season.
The farm gate price refers to the amount a farmer is paid for their goods at the point of production, meaning directly at the farm.
It reflects the value of the product before additional costs like transportation, processing, or market fees are added.
The price increase, which came into effect immediately, is aimed at boosting farmers’ incomes.
President of Ghana, Nana Akufo-Addo, whose term ends on January 7, 2025, made this disclosure during a farmers’ award ceremony late Friday, according to Reuters.
This is the second price hike for the season, reflecting efforts to support the country’s cocoa industry, where Ghana is the second-largest global producer.
The potential price hike in Ghana’s cocoa sector has led to farmers hoarding beans since October, raising concerns about a tightening of global supplies.
Authorities in Ghana have reportedly been focused on increasing farmers’ incomes while curbing smuggling, which contributed to a loss of over a third of the country’s cocoa output in the 2023/24 season.
This disruption in production, combined with other sectoral challenges, brought Ghana’s cocoa output to its lowest level in more than two decades.
President Nana Akufo-Addo further stated that he had instructed the Ghana Cocoa Board (Cocobod) to offer scholarships for the children of cocoa farmers to pursue tertiary education.
However Bright Simons, a vice president at Accra-based think tank IMANI Africa, said the motivation for the policies “appears to be strictly about votes in the impending elections”, noting that the price hike was significantly below the cumulative effects of inflation and currency depreciation, muting the potential impact.
This initiative is part of a broader effort to improve the welfare of cocoa farmers and their families, ensuring that the next generation benefits from better educational opportunities while supporting the sustainability of the cocoa sector.
