The Cooperative Cocoa Farmers Association of Ghana is warning of a possible price reduction, citing signs and information being tracked. According to Critical Issues, President Issifu Issaka stated that the price of cocoa will likely be reduced again, echoing concerns over the sector’s financial viability.
The government’s recent decision to slash the producer price to GH¢2,587 per bag has already sparked controversy, with farmers expressing discontent over the move. The reduction is attributed to falling global cocoa prices, which have dropped from an average of $7,200 per tonne to around $4,100 per tonne.
Finance Minister Dr. Cassiel Ato Forson announced the price cut, citing liquidity pressures and the need to reflect current international price realities. He assured farmers that the government has opted to maintain a high producer share of export earnings at 90% of the achieved gross FOB price.
The cocoa sector has been grappling with systemic problems, including mismanagement and financial constraints. A recent cabinet meeting highlighted the need for comprehensive reforms to address these challenges and guarantee fair prices for farmers.
According to GhanaWeb, the government plans to introduce an automatic adjustment of producer prices to align with global market fluctuations and guarantee a minimum of 70% of the gross FOB price to farmers.
The impact of the price reduction on Ghana’s cocoa industry remains uncertain, with stakeholders urging the government to prioritize farmers’ welfare and sector sustainability.
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Author: Korkor Anumu
