GOVERNMENT INCREASES COCOA PRICE BY 63.5%

In a historic move, the government has announced a remarkable 63.5% increase in the price of a bag of cocoa, raising it from GH₵800 to GH₵1,308 for the 2023/2024 cocoa season. This marks the highest price increment in cocoa prices in the last 15 years. 

President Akufo-Addo made this announcement during the launch of the new crop season in Tepa in the Ashanti Region. He underscored the importance of this price adjustment in sustaining the cocoa sector whilst emphasizing that the viability of the entire cocoa industry hinges on adequately compensating producers. With a prediction of stable cocoa prices above the $2,600 threshold, the President assured that the government is committed to consistently offering fair prices to farmers in the years ahead.

The decision to raise cocoa prices is part of a broader strategy jointly undertaken by the government and the Ghana Cocoa Board (COCOBOD) to motivate cocoa farmers to increase production for exports. The new price for a tonne of cocoa is set at 20,943 cedis, a substantial increase from the previous 12,800 cedis.

Hon. Bryan Acheampong, Minister for Food and Agriculture, explained that the substantial upward adjustment is a critical component of the government's turnaround strategy to rejuvenate the cocoa sector. He believes that these enhanced prices will not only improve the livelihoods of farmers but also ensure that COCOBOD will implement comprehensive policies to bolster the cocoa industry.

In an unprecedented move, the cocoa crop season commenced in September this year, as opposed to the traditional start date of October. The Chief Executive Officer of COCOBOD Mr Joseph Boahen Aidoo stated that this change aims to deter farmers from hoarding cocoa beans, a practice known to impact the commodity's quality. 

Cocoa cultivation began in Ghana in the 1890s, and the country quickly became the world’s largest exporter of cocoa, a position it held from 1910 to 19801. Today, Ghana’s cocoa is known for its high quality and remains at the heart of the country’s economy, bringing hundreds of millions of dollars annually from the export of cocoa beans and processed materials. 

Some cocoa farmers have expressed enthusiasm over the new pricing structure, believing that it will discourage the smuggling of cocoa to neighbouring countries where prices are higher. This measure could help curb the illegal export of Ghanaian cocoa and restore Ghana’s former position as the highest producer of cocoa in the world. 

It is worth noting that the government had previously increased the price of a cocoa bag from GH₵660 to GH₵800 in October last year ahead of the 2022/2023 cocoa season.

Interestingly, buyers from Togo between January and March 2023 were purchasing a bag of moist cocoa beans at GH¢1,600 but later dropped to GH¢1,360. Even with the price increase, Ghana's cocoa remains competitively priced compared to neighbouring countries.

The government's decision to substantially raise cocoa prices is a bold step towards supporting cocoa farmers, boosting production, and ensuring the long-term sustainability of the cocoa sector in the country. This move is expected to have a significant impact on the local cocoa industry and may set a precedent for cocoa-producing nations across the globe.

Analysis

Above is an analysis of a cross-section of views from Adom FM, Peace FM, Ghone TV, Citi FM, and UTV on the issues surrounding the 63.5% increase in the selling price of cocoa. 

In 2 hours, a total of 245 comments were recorded across the social media pages of the 5 media houses sampled. Out of the 245 views, 10 commenters were in support of the 63.5% increment of a cocoa bag, and 1 commenter was neither for nor against the increment but rather reminded the government of the international market price for the bag of cocoa beans. 5 commenters, however, were against the 63.5% increment and called for further upward adjustment of the price of a bag of cocoa beans and 228 were unrelated comments that primarily promoted their products and services.

Observations

1.    Viewership on the social media pages was high but the number of comments related to the matter being discussed was low.

2.    During 1 of the 5 shows, transmission of the live feed was interrupted intermittently. Also, the majority of the comments on the various platforms were salutations to the host and guests, advertisements of products and services and other issues unrelated to the matter being discussed.

Conclusion

Based on our analysis, we are of the view that a section of the views of Ghanaians sampled strongly agree with the government’s decision to increase the price of a bag of cocoa beans as it was long overdue. Also, the commenters believed that the government could in the future further increase the price to match the price on the international market.