Ghana Vows Premium Cocoa Price to Outshine Côte d’Ivoire

Ghana to Outprice Côte d’Ivoire in Cocoa Market – COCOBOD Pledges Higher Rates

Ghana’s cocoa farmers have received assurances that the price of cocoa will be higher than that set by their neighbouring Côte d’Ivoire in August. This guarantee comes amid strong market expectations for a competitive farm gate price, driven by the surge in global cocoa prices and Ghana’s commitment to ensuring better earnings for Ghanaian farmers. Despite operational and financial challenges inherited by the new management of Ghana
Cocoa Board (COCOBOD) remains confident in its ability to increase the price paid to farmers. Currently, the producer price of cocoa in Ghana stands at GH₵3,100 per 64kg bag.

In contrast, Côte dIvoire has raised its farm gate price to 2,200 CFA francs ($3.62) per kilogram, equivalent to GH₵3,696 per 64kg bag. According to Jerome Sam, Head of Public Affairs at COCOBOD, cocoa farmers should expect an improved producer price. Sam emphasized that COCOBOD is committed to motivating farmers to increase productivity. He stated that Ghana's cocoa price would surpass that of Côte d’Ivoire, although the exact price remains to be determined by the COCOBOD board. The assurance is a welcome relief to Ghanaian cocoa farmers, who have been smuggling cocoa beans to Côte d’Ivoire due to the price difference between the two countries. Buyers in Côte d’Ivoire offers quicker payments, and the porous nature of Ghana’s border and in adequate border patrols contribute to the smuggling issue.

This has resulted in significant revenue losses for Ghana, as well as challenges in meeting production targets.
With the anticipated price increase, COCOBOD will likely receive high volumes of cocoa beans for export. This development will benefit farmers and the institution, as Ghana aims to maximize its cocoa exports and revenue. The potential price increase is a positive step towards addressing the smuggling issue and ensuring that Ghanaian farmers receive fair compensation for their produce.

Considering the challenges faced by COCOBOD, including inherited debts and operational inefficiencies, the institution’s commitment to improving farmer earnings is commendable. As the COCOBOD board is yet to be inaugurated, farmers and stakeholders eagerly await the announcement of the new price, which is expected to be more competitive than what Côte d’Ivoire offers.

The global cocoa market has recently experienced fluctuations, with prices surging due to supply chain disruptions and increased demand. Ghana’s commitment to competitive pricing will likely significantly impact the cocoa industry. To increase farmers; earnings, COCOBOD aims to boost productivity and maximize exports, which will ultimately benefit Ghana’s economy. The new management of COCOBOD has also identified the need to address the financial challenges inherited from the previous administration.

According to Jerome Sam, COCOBOD and Ghanaian farmers stand to lose vast sums of money due to inefficiencies and inability to deliver contracts. However, this has not discouraged the institution from committing to a new price that will motivate farmers and increase productivity. With this anticipated price increase, Ghana’s cocoa industry could secure significant revenues. Ghana is poised to benefit from increased cocoa exports and revenue and solidify its position as a major player in the global cocoa market if Côte d’Ivoire’s price can be surpassed.

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