Ghana, the world’s second-largest cocoa producer, is contemplating a significant increase in the farmgate price paid to cocoa farmers, potentially up to twice the current rate.
This unprecedented move aims to curb the smuggling of cocoa beans to neighbouring countries, where farmers can fetch higher prices.
The Ghana Cocoa Board is in discussions with the government to approve an increase of 50% to 100% in farmgate prices. This follows a previous 63.5% increase to 20,928 cedis ($1,567) a ton at the start of the main crop season in September.
The country is considering raising cocoa farmgate prices by 50-100% to combat smuggling and align with global price hikes.
The backdrop to Ghana’s decision is a global cocoa shortage, exacerbated by adverse weather conditions and disease affecting African output.
Cocoa futures in New York have more than doubled this year, reducing Ghanaian farmers’ share from 44% to 16%.
Ivory Coast’s recent 50% pay increase for cocoa farmers may influence Ghana’s decision amidst a global cocoa shortage.
