Sefwi akontombra: The Ghana Cocoa Board (COCOBOD) is actively educating cocoa farmers about the cocoa producer price as the 2024/2025 crop year approaches its end in July, with the 2025/2026 cocoa year set to open by the second week of August 2025.
According to Ghana News Agency, the sensitization initiative aims to provide a clear understanding of the calculation of the producer price and how the fluctuations between the US Dollar and the Ghana Cedi significantly affect the financial outcomes for cocoa farmers. The Producer Price Review Committee (PPRC) considers several factors, including averaging global market prices from both forward and spot sales, to determine an achieved Free on Board (FOB) price that sets the prevailing farm gate price.
Addressing a gathering of traditional authorities, representatives of cocoa cooperatives, assemblymen, and cocoa farmers in Sefwi Akontombra, Mr. Kenneth Osei Ampofo, Principal Public Affairs Officer of COCOBOD, clarified that the 2024/2025 cocoa producer price was based on an achieved FOB of 63.9%, translating to US$3100 at an exchange rate of GHC16.00 to US$1.00. This resulted in a price of GH?49,600 per tonne, equating to 16 bags of 64kg cocoa, each sold at GHC3,100.00.
Mr. Osei Ampofo highlighted that with the cedi's increasing value against the dollar, where the Bank of Ghana exchange rate is now US$1.00 to GH?10.40, the achieved FOB of US$3100 currently converts to GH?32,240.00, a reduction from GH?49,600.00, marking a shortfall of GH?17,360.00 per tonne. This cost is absorbed by COCOBOD and the Ghanaian government.
This situation means that an additional GH?1,085 is added to each bag of cocoa to maintain a price of GH?3,100, which would otherwise drop to GH?2,015. This measure ensures that cocoa farmers are not disadvantaged by the cedi's recent appreciation against the dollar.
In light of these developments, Mr. Ampofo urged farmers to manage their expectations regarding the new producer price for the upcoming 2025/2026 cocoa crop year. He encouraged patience until the PPRC finalizes the new price.
Nana Kwabena Ebi II, the Chief of Akontombra, encouraged farmers to accept the new price once announced by COCOBOD and the government. He also stressed the importance of adopting the good agronomic practices taught by the Cocoa Health and Extension Division (CHED) to boost yields and revenue.
Nana Kwabena Ebi II expressed optimism about the results of the cocoa farm rehabilitation program and urged farmers impacted by the Cocoa Swollen Shoot Virus Disease (CSSVD) to seek assistance from extension officers.
District Chief Executive Joseph Appiah assured farmers of continued collaboration with COCOBOD and relevant authorities to explore opportunities for improving cocoa farming practices. He emphasized the importance of accounting for all cocoa produced in Akontombra through proper grading and sealing within the district.
Mr. Appiah reiterated his commitment to securing the best opportunities for cocoa farmers and the broader Akontombra district.
