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GCCP: Increase Producer Price of cocoa to ¢838 to alleviate farmers plight

Ghana Cocoa Board (COCOBOD) is requested by the Ghana Civil-Society Cocoa Platform (GCCP), an independent campaign and advocacy platform for civil society actors in the cocoa sector, to announce an increase in the Producer Price of Cocoa to $838 per bag from the current level of $660 for the 2022–2023 crop season.

A minimum of $838, or $98 per bag of the 62.5 kilograms of cocoa beans, should be paid to farmers, according to the group’s working assumption of the Producer Price Review Committee (PPRC) of COCOBOD, which aims to ensure that the farm gate price is set at a minimum of 70% of the net Free on Board (FoB) price.

According to a statement, this amount was calculated using the lowest predicted values available, including the Living Income Differential (LID) of $400 per tonne that cocoa growers and purchasers had previously agreed upon.

“For the 2022–2023 cocoa season, we anticipate the net FOB to be at least 80% of the current producer price, which is anticipated to be around $1,682. According to the PPRC working assumption, the farmer would receive $1,178 per tonne if at least 70% of net FoB went to them, the group claimed.

According to the GCCP, the amount is less than the $400 LID that COCOBOD introduced and assessed on all futures for the 2020–2021 cocoa season.

Assuming COCOBOD pays the farmer the full $400 LID, the farm gate price for the 2022–2023 cocoa season will be $1,578 per tonne. According to the Bank of Ghana, cocoa producers should get at least $13,413 per tonne of cocoa beans, or $838 each bag of cocoa beans, using the annual exchange rate of $1 to 8.5, it was noted.

The GCCP described the figures as cautious predictions and stated that it anticipates COCOBOD will easily meet the demands.

 

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