Business

Ghana increases producer price of cocoa by 33%

ghana-cocoa-sortingGhana has increased the producer price of cocoa by 33 per cent for the 2010/11 season, the country’s Finance Minister, Dr. Kwabena Duffuor, announced Tuesday.

The new price is pegged at GH¢3,200 per tonne of cocoa, up from GH¢2,400 per tonne and the increase represents 75.15 per cent of the net Free on Board (FOB) price, meaning a bag of cocoa will sell at GH¢200.00.

The new price will take effect when the cocoa season opens on Friday 1 October.

Duffuor said the new price was reached so as to fight the high incidence of smuggling and to motivate local cocoa farmers to produce more to attain Ghana’s target of one million tons by 2012.

Other rates and fees for Licensed Buying Companies (LBCs) in the industry were also agreed upon, which included fee for buyers’ margin, hauliers rate, Cocoa marketing Company’s internal marketing costs, as well as fees for disinfestations, grading and sealing.

According to him, to further reward the hardworking farmers, the Government of Ghana had directed the Ghana Cocoa Board to work out and pay bonuses to farmers on the 2009/2010 main crop and ensure that the payment of the bonus was effected before December 2010.

Mr. Anthony Fofie, Chief Executive Officer of the Ghana Cocoa Board, said: “The new price is a two-prong approach to stem smuggling by addressing the price differentials between Ghana and her neighbours and to improve the quality of life of cocoa farmers.”

Fofie said 700,000 metric tons would be purchased for the season.

As of 24 September, provisional figures for purchases for the 2009/10 season, stood at 632,024 tons.

Nana Agyei Kramo, Volta Region Chief Cocoa Farmer, welcome the new price, saying it was a good response from government to cocoa farmers’ request

Anthony-Claret Onwutalobi
Anthony-Claret Onwutalobi
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC and CEO of Portia Web Solutions. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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