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Sunday, December 4, 2022

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

The Ghana Civil-Society Cocoa Platform (GCCP), an independent campaign and advocacy platform for civil society actors in the cocoa sector wants Ghana Cocoa Board (COCOBOD) to announce an increase in the Producer Price of Cocoa to ¢838 from the the current ¢660 a bag for the 2022/2023 crop season.  

According to the group, its working assumption of the Producer Price Review Committee (PPRC) of COCOBOD, which aims at ensuring that farm gate price is pegged at a minimum of 70% of the net Free on Board (FoB) price shows that farmers should be receiving a minimum of ¢838 which translates into $98 per bag of the 62.5 kilogramme of cocoa beans.

This figure, it said in a statement was arrived at using the lowest projected values available, including the Living Income Differential (LID) of $400 per tonne as agreed between cocoa producers and buyers.

“We expect the net FoB for 2022/2023 cocoa season to be not less than 80% of the prevailing producer price, which should be around $1,682. By applying the PPRC working assumption of minimum 70% of net FoB going to farmers, which translates into $1,178 per tonne for the farmer,” the group said.

The GCCP argued that the figure is less than $400 LID that was instituted and charged by COCOBOD on all futures for 2020/2021 cocoa season.

“Assuming COCOBOD gives all the $400 LID to the farmer that brings the farm gate price to $1,578 per tonne for the 2022/2023 cocoa season. Using the year on year Bank of Ghana exchange rate of $1 to ¢8.5, cocoa farmers are expected to receive not less than ¢13,413 per tonne of cocoa beans which should translate into minimum ¢838 per bag of cocoa beans”, it pointed out.

Describing the calculations as conservative estimates, the GCCP said it expects COCOBOD to meet the demands with ease.

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