Ghana to increase cocoa farmgate prices to GHC8,000 per tonne

The second top producer of cocoa, Ghana, is expected to raise cocoa farmgate prices by 5.2% for the 2019/20 season.

This is the first increase in four years after strong sales of export contracts to chocolate makers and cocoa houses.

According to Reuters, sources say that the farmgate price will rise from GH¢7,600 per tonne to GH¢8,000 (US$1,523.81) per tonne for the season starting in October.

A source from Cocoa Marketing Company (CMC) said “the price will be around GH¢8,000 per tonne next season. That’ll be GH¢500 per bag, and it’s something that cocoa farmers deserve.”

Meanwhile, Ivory Coast, the biggest cocoa producer, will also raise its farmgate price.

The cocoa prices for Ghanaian farmers are set by the country’s Producer Price Review Committee. The committee meets yearly in September to decide a price which is officially announced in early October before the cocoa season starts.

“Inflation and interest rates are now low in Ghana at the moment, and aside from the election (in December 2020), another possible reason for a hike would be the positive gains cocoa made this year,” another source at Cocobod said.

Ghana produced 794,000 tonnes of cocoa this season, down 11.7% from the last season.

In June 2019, Ghana and Ivory Coast jointly agreed on a floor price for cocoa of US$2,600 per tonne and a living income differential (LID) of US$400 per tonne. They have also been in talks for two years about simultaneously announcing their farmgate prices.

The two countries are also working together to set prices close enough to avoid cocoa smuggling on their border.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote seeks to raise an additional $1.1 billion to complete his refinery project by 2023

Africa’s richest man Aliko Dangote seeks to raise an additional $1.1 billion to complete his refinery project by 2023

9 most expensive African countries to rent a one bedroom apartment, based on property price to income ratio

9 most expensive African countries to rent a one bedroom apartment, based on property price to income ratio

8 African countries where Rihanna plans to launch her luxury Fenty Beauty products

8 African countries where Rihanna plans to launch her luxury Fenty Beauty products

Here are the top 10 cities in Africa where the most rich people live

Here are the top 10 cities in Africa where the most rich people live

Top 10 happiest countries in Africa in 2022

Top 10 happiest countries in Africa in 2022

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Haiwezi, my wife is prettier - Omanyala turns down Huddah’s advances

Haiwezi, my wife is prettier - Omanyala turns down Huddah’s advances