Ghana to raise cocoa farmers’ prices by 5.2% -sources

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TO GO W/ AFP STORY IN FRENCH BY David YOUANT Workers cut cocoa in the southwestern Ivorian village of Godilehiri 01 November 2007 near Divo where cocoa and coffee plantation farmers are upset with suspected misappropriation of cocoa revenue or money laundering. Ivory Coast is the world's leading producer of cocoa, which along with coffee accounts for 40 percent of the country's exports and about 20 percent of gross domestic product. A June report by Global Witness charged that cocoa helped finance low-level armed conflict that has left Ivory Coast divided in two for five years between a government-held south and a rebel north since a foiled coup bid in 2002. AFP PHOTO / ISSOUF SANOGO (Photo credit should read ISSOUF SANOGO/AFP/Getty Images)

ABIDJAN (Reuters) – Ghana will raise cocoa farmgate prices by 5.2% for the 2019/20 season, the first increase in four years, following strong sales of export contracts to chocolate makers and cocoa houses, industry sources told Reuters.
The farmgate price will rise to 8,000 Ghanaian cedi($1,523.81) per tonne in the season starting in October, from 7,600 cedi per tonne last season, the sources at industry body Cocobod and its marketing arm Cocoa Marketing Company (CMC) said on Tuesday.

The price has been unchanged for the past three seasons in Ghana, the world’s second-biggest cocoa producer.

“The price will be around 8,000 GHS per tonne next season. That’ll be 500 GHS per bag and it’s something that cocoa farmers deserve,” a CMC source said.
Ivory Coast, the biggest producer, will also raise its farmgate price, sources said last month.

Ghana’s Producer Price Review Committee which sets the farmgate price meets annually in September to decide a price and the official announcement is made in early October before the start of the cocoa season, sources said.

“Inflation and interest rates are now low in Ghana at the moment and aside the election (in December 2020), another possible reason for a hike will be the positive gains cocoa made this year,” another source at Cocobod said.

Ghana produced 794,000 tonnes of cocoa this season, down 11.7% from the last season.

Ghana and Ivory Coast joined forces in June to impose a floor price for cocoa of $2,600 per tonne and a live income differential (LID) of $400 per tonne. They have also been in talks for two years about simultaneously announcing their farmgate prices.

The two countries are also working together to set prices close enough to avoid cocoa smuggling on their border.

($1 = 5.2500 Ghanaian cedi)

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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