Ghana’s cocoa farmers are anxiously waiting for the announcement of cocoa prices for the new crop season.
The government is expected to announce the producer price for cocoa on Saturday
Its neighbuor Côte d’Ivoire on Wednesday increased the minimum price farmers must get for a kg of cocoa beans for the 2016-17 crops by 10 percent to 1,100 CFA ($1.88), a government spokesman has said.
In Ghana cedis it amounts to GHS 7,150 per tonne approximately GHS 446 per 64 kilo bag of Cocoa in Ghana.
Côte d’Ivoire recorded port arrivals of 1,565,000 tonnes of beans in 2015-16, down 12 percent from the previous season’s record crop, spokesman Bruno Kone said after a cabinet meeting in the commercial capital Abidjan.
It exported 1,548,000 tonnes of cocoa in 2015-16, down from 1,628,000 tonnes the previous season.
The Coffee and Cocoa Council (CCC), Ivory Coast’s marketing board, had proposed farmer prices ranging from 1,000 CFA to 1,100 CFA but advised the government to leave it unchanged at 1,000 to protect against an expected drop in global prices, CCC and finance ministry sources said.
“Contrary to previous years when (the CCC) asked us to pick the highest price, this time they are asking us to keep the price unchanged due to market conditions,” said a senior finance ministry source who asked not to be named.
He said the CCC was expecting world cocoa prices, which have fallen steadily since late last month, to continue their slide through December. Rather than fix a higher farmer price, the CCC favoured doubling its reserve fund to 150 billion CFA francs.
The government has steadily raised the farmer price since the 2012-13 season when it abandoned a system of spot buying and began selling its cocoa forward as part of sweeping reforms of the sector.
Industry players in Ghana are of the view that due to the drop in the prices of cocoa in the international market they were not expecting COCOBOD to increase the producer price of Cocoa.
Business Desk Report