Ghana Increases Cocoa Prices to Curb Smuggling and Support Farmers

Ghana’s government has announced a significant 45% increase in the producer price of cocoa for the upcoming 2024/2025 crop season. The move is aimed at curbing smuggling and improving the livelihoods of cocoa farmers, according to Agriculture Minister Bryan Acheampong.

The new price, effective immediately, raises the payment for a 64-kilogram bag of cocoa beans to $192, up from $132. This brings the farm gate price to $3,063 per tonne, marking a substantial 129% increase from the previous season.

Experts believe that the price hike could help reduce illegal cross-border sales and encourage farmers to reinvest in their cocoa farms, potentially easing the global supply shortfall. Ghana’s cocoa sector, which contributes about 10% to the nation’s GDP, heavily depends on smallholder farmers.

Challenges such as weather issues, disease, inadequate inputs, and smuggling have plagued Ghana’s cocoa harvest in recent years. Additionally, the depreciation of the cedi and rising production costs have further strained farmers’ margins.

With the new price increase, Ghana is taking a step towards supporting its cocoa farmers and strengthening the cocoa sector in the face of these challenges.

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