Group determines cocoa price for 2023/2024 cocoa crop season
An independent campaign and advocacy platform for civil society actors in the cocoa sector says it is expecting the net country cocoa selling price (producer price) to be not less than $3,146 in the 2023/2024 crop season.
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The Ghana Civil-society Cocoa Platform (GCCP) said, based on the 2022/2023 parameters for calculating the net Free on Board (FoB) for cocoa beans, the group expects the net FoB for 2023/2024 cocoa season to be not less than 80 per cent of the prevailing producer price, which should be around $2,518.
By applying the Producer Price Review Committee (PPRC) working assumption of minimum 70 per cent of net FoB going to farmers as producer price, that translates into $1,762 per tonne for the farmer.
The Founder of Cocoa Mmaa and a member of GCCP, Leticia Yankey, said, “this figure is less than the $400 LID that was instituted and charged by COCOBOD on all futures for the 2022/2023 cocoa season.
Assuming COCOBOD gives all the $400 LID to the farmers, which brings the farm gate price to $2,162 per tonne ($135 per bag) for the 2023/2024 cocoa season.”
She was speaking at a press conference on the expectation of farm gate price for 2023/2024 cocoa season today in Accra prior to the announcement scheduled for Saturday 9th September 2023.
She indicated that using the year on year Bank of Ghana (BoG) exchange rate of $1:GH¢10.2, cocoa farmers are expected to receive not less than GH¢22,080 per tonne of cocoa beans which should translate into minimum of GH¢1,380 per bag of cocoa beans.
“Once again, these estimations are based on the minimum projected figures and the assumption that farmers will receive a minimum 100 per cent of Living Income Differential (LID),” she added.
Mrs Yankey explained that based on the working assumption of the PPRC which aims at ensuring that farm gate price is pegged at a minimum of 70 per cent of the FoB price of cocoa beans, GCCP is of the firm opinion that farmers in Ghana should be receiving a minimum of GH¢22,080 per tonne, which is equivalent to GH¢1,380 per bag (62.5kg) of cocoa beans.
The figure, she said, was arrived at using the lowest projected values available including an LID of $400 per tonne as agreed.
“These are very conservative estimates and we expect the COCOBOD to be able to meet them with ease.
We celebrate the government's commitment to cocoa farmers through the numerous interventions being implemented to ensure their well-being and are anxiously awaiting the announcement by COCOBOD on the farm gate price for cocoa in the 2023/2024 cocoa season,” she stated.
Factors
A representative from the World Cocoa Farmers Organisation (WCFO), Moses Djan Asiedu, said the minimum of 55-65 per cent increment in the farm gate price of cocoa for this season was arrived at considering the prevailing international market dynamics which has led to over 35 per cent increment in the International Cocoa Organization (ICCO), world cocoa market price as well as the challenges post by the unstable Ghanaian cedi, the high inflation, the high cost of labour and most importantly the need for farmers to be paid adequate and commensurate prices for their efforts.