In a bid to enhance cocoa farmers’ income amidst record-high chocolate ingredient prices on the international market, Ghana has increased the fixed farmgate price paid to cocoa growers by more than 58% for the remainder of the 2023/24 season. This move comes as cocoa prices have surged over the past year due to disease outbreaks and adverse weather conditions in Ghana and neighboring Ivory Coast, the top two cocoa-producing countries globally, leading to a persistent market deficit.
Despite the significant rise in global cocoa prices, farmers had not been able to fully benefit from these increases as cocoa contracts are typically sold in advance. To address this disparity, Ghana’s marketing board Cocobod announced an elevation of the state-guaranteed cocoa price to 33,120 cedi ($2,490.23) per metric ton from the initial 20,928 cedi set at the season’s commencement.
Ivory Coast also took a similar step by raising its own farmgate price by 50% earlier in the week.
Samuel Adimado, the president of Ghana’s cocoa buyers group, emphasized that while this price adjustment necessitates higher costs for buyers, it ultimately ensures that farmers receive a fair share of the global market value for their cocoa beans. Adimado highlighted that the increased farmgate price would incentivize cocoa growers to make more significant investments in their farms, given the enhanced profitability of their business operations.