The Government of Ghana has announced a sharp reduction in the cocoa producer price, citing global market pressures and liquidity challenges in the se
The Government of Ghana has announced a sharp reduction in the cocoa producer price, citing global market pressures and liquidity challenges in the sector, much to the annoyance of cocoa farmers.
The new price has shockingly been set at GH¢41,392 per tonne, which is the equivalent of GH¢2,587 per 64kg bag.
Previously, it was GH¢51,660 per tonne or GH¢3,625 per bag. This unexpected adjustment was confirmed by Ghana’s Finance Minister, Dr Cassiel Ato Forson, following a meeting of the Producer Price Review Committee.
Due to the huge decline in global prices in cocoa, which have been under severe pressure due to oversupply and weaker demand.
Ghana, as the world’s second-largest cocoa producer, relies heavily on the crop for foreign exchange earnings, and the government explained that the cut was necessary to align domestic producer prices with global realities.
Officials stressed that while the reduction is painful, it was designed to prevent deeper financial instability in the cocoa sector.
The government has promised that it remains highly committed to cocoa farmers, but the farmers see it as untrue. The price of a bag of cocoa has been reduced by GHC1000, which the connoisseurs of the cocoa business have predicted that the decision will demoralise farmers in the near future.
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