COCOBOD denies setting new producer price for next crop season

File photo: Cocoa farmers

COCOBOD has denied reports that it has settled on a new producer price for cocoa farmers.

This follows reports that COCCOBOD is expected to pay GH ¢8, 000 for
tonne producers by cocoa farmers for the cocoa for the next crop season.

The media reports noted that the implementation of the said taxes would happen from October this year.

This represents a 5.2 per cent increase compared to GH ¢7, 600 that what was paid during the next crop season.

The price has not seen a significant change over the past three
years, this was due to declining prices of cocoa on the international
market.

COCOBOD on the producer price increase

Speaking to JoyBusiness Head of Public Affairs at COCOBOD, Fifi Boafo says these reports are not accurate.

This is because the committee charged with determining the price has not even gotten to the point where they decide on this new price.

He added that there are several processes that the board go through
in determining these and it’s not just based on one person’s
recommendation or an institution.  

He said, “Decision to fix the price is that of the producer price
review committee, so until they meet, nobody at any point in time can
determine the price”.

He argued that “if you really appreciate the way things are done, you
would understand how the system operates, then one cannot quote just
one source as being the bases for any announcements”.

Fiifi Boafo maintained that all the stakeholders that make up the
Producer Price Review Committee would surely be meeting before October
this year to settle on this new price for the announcement to be made
soon.

Analysts on this proposed review in prices
Some analysts have also argued that looking at the current development
in the sector, there should be some significant increase when the
Committee meets to review Producer Price for cocoa purchases for the
next crop season.

Cocoa Loan Syndication

COCOBOD is expected to sign the Cocoa loan Syndication on September
12 in Paris France. COCOBOD would be seeking to raise to $1.5 billion
from these institutions.

The funds are expected to be used to finance cocoa purchases for the 2019/2020 crop season and other developments in the sector.

Source: Ghana|Joy Business

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