New cocoa price is a rip-off on farmers – Minority

The Minority in Parliament has expressed its disappointment in the government over the announced increases in the producer price of cocoa on Friday.

The Minority described the increase, which constitutes 25.47% of world cocoa prices, as paltry and a rip-off.

In a statement on Friday, April 5, 2022, the Minority stated that the increase is far below their expectations per their earlier statement on April 2, 2024, demanding an upward review of cocoa prices.

“This demand was predicated on the recent surge in the world market price of cocoa to an all-time high of, averagely, US$10,000 per tonne, which is equivalent to GH¢130,000, at a conservative exchange rate of US$1 to GH¢13. This amount translates into GH¢8,125 per bag of cocoa on the international market.”

“It is sad to note that the newly announced producer price of GH¢33,120 per tonne, which translates into GH¢2,070 per bag, constitutes a paltry 25.47% of the world market price of cocoa. Once again, we wish to reiterate that this is a rip-off of our hard-working cocoa farmers, as it constitutes the lowest percentage of the international market price of cocoa ever given to Ghanaian cocoa farmers as farm-gate price in the history of this country,” the statement said.

They argued that contradicts President Akufo-Addo’s promise to provide Ghanaian cocoa farmers with a minimum 70% farm-gate price.

The Minority opined further that the government should not increase the farm-gate price of cocoa below 60% of the international market price, as that would worsen the plight of already struggling cocoa farmers, who have experienced significant income losses over the years.

“At a time when our national cocoa output has sharply declined from 969,000 MT in 2016 to a paltry 450,000 MT in 2024, the least expected of the Akufo-Addo/Bawumia government is to give our already-impoverished cocoa farmers a fair increment in the farm-gate price of cocoa to compensate for the huge losses they have recorded in their incomes.”

“We hold the view that any increase in the farm-gate price of cocoa below 60% of the prevailing international market price is a monumental rip-off for our suffering cocoa farmers. In other words, any increment in the farm-gate price of cocoa below GH¢5,000 per bag is grossly unfair and unacceptable.”