Cocoa farmers in Ghana are urging for a substantial 72.5% rise in the farm gate price of cocoa beans, advocating an increase from ¢800 to ¢1,380 per bag for the upcoming cocoa season, set to commence on September 8, 2023, instead of the initially planned date of October 1, 2023, as announced by the Ghana Cocoa Board (COCOBOD).

The Ghana Civil Society Cocoa Platform (GCCP) has taken the lead in voicing these concerns, organising a press conference to emphasise their demand for a higher commodity price. 

Ms Leticia Yankey, a member of the platform, explained their stance, stating that their request aligns with the Producer Price Review Committee’s goal, which aims to ensure that the farm gate price remains at a minimum of 70% of the net Free on Board (FoB) price of cocoa beans. GCCP believes that Ghanaian farmers should receive no less than ¢22,080 per tonne, equivalent to ¢1,380 per bag (62.5kg) of cocoa beans, taking into account the lowest projected values, including a Living Income Differential (LID) of $400 per tonne, as agreed upon.

Mr Obed Owusu-Addai, Co-Coordinator of the Ghana Civil Society Cocoa Platform, expressed concern over the LID, stating that it has dwindled to a mere $25.

He highlighted the impact of this reduction on cocoa premiums, explaining that in previous years, Ghana and Cote d’Ivoire had enjoyed country premiums and bonuses. 

However, with the introduction of the $400 per tonne LID for the 2019/20 cocoa season, market dynamics shifted, leading to a decline in premiums, which now stand at only $25.

“Before 2020, Ghana and Cote d’Ivoire were enjoying the origin differential/country premium and even after the season had ended, COCOBOD gave bonuses. But in the 2019/20 cocoa season when Ghana and Cote d’Ivoire instituted the Living Income Differential of $400 per tonne of cocoa, the market reacted”.

“For the 2020/2021 cocoa season, the country premium went into negative to the extent that till date, the premium has reduced to $25,” he complained.

The Ghana Civil-Society Cocoa Platform serves as an independent campaign and advocacy entity for civil society stakeholders within the cocoa sector.