Cocoa farmers in Ghana and neighbouring Cote D’Ivore are expected to realise an increment of US$400 per every tonne of cocoa produced from 2021, ABC News can report.
This implies that the cocoa farmers, who are currently paid $1,375 per tonne will generate more than $1,700 per tonne from 2021 when the increment takes effect.
This is part of a joint cocoa production and marketing policy agreed on by the two countries, aimed at rewarding Cocoa farmers for their toil and also generate foreign income for the two countries.
Addressing a United Nations Development Programme (UNDP) Conference on Africa’s development in Accra Thursday, President Akufo-Addo expressed concern that the farmers from the two countries who together produce about 65% of the World’s Cocoa are not getting value for their hard work.
He added that the determination of the new price formed part of efforts to reform the system within which cocoa is priced at the global level.
“We make just $6 billion from an over $100 billion chocolate industry. This is the meagre return that our hardworking farmers get from their toil…This is the rationale for the strategic partnership between Cote D’Ivoire and Ghana in our joint cocoa production and marketing policy which is already paying dividends.
“A Living Income Deferential (LID) of US$400 per tonne will be paid to farmers for all categories of cocoa beans from Ghana and Cote D’Ivoire starting from the 2021 cocoa crop season when our two countries begin to apply a new price mechanism for the sale of cocoa at $2,600 dollars per tonne” he stated.
Addressing the Conference, which was under the theme: “Africa’s Money For African Development: A Future Beyond Aid,” President Akufo-Addo indicated that Ivory Coast and Ghana have agreed initial deals to sell cocoa with a living income premium of $400 a tonne added to the price, in a bid to reform the global price for cocoa.
The adjustment saw the price of cocoa increased by GH¢40 per bag and GH¢640 per tonne, which indicates the Ghanaian cocoa farmer now receives 72.27 per cent of the Free on Board (FOB) price.
As parts of efforts to maximise the gains in the cocoa sector, government, within the week, announced that it has secured a $600 million stimulus package from the African Development Bank (AfDB) to revamp the cocoa sub-sector over the next seven years, starting next year.
The package is aimed at increasing cocoa production by introducing modern techniques and technology and shift away from the annual syndication of loans as capital investment.