The Cocoa Abrabopa Association has expressed profound dissatisfaction with the recent increase in the producer price of cocoa announced by the government.
The Association, which represents 8,000 members across Ghana’s five cocoa-growing regions, has criticized the GHS3,000 per 64 kg bag price as inadequate and dismissive of the farmers’ needs.
“The whole announcement for architecture for this year, you will realise that there is no respect for farmers in coming at this price.”
“So i don’t think COCOBOD is being fair to Ghanaian cocoa farmers.”
“At least if you are giving the price, let us know the basis with which you are actually giving that price.”
“Even the amount is too flat, you give GHS3,000. At least add something on top of it, so that it will take care of the … cost …”
He further urged that government should give farmers the basis, “Your mandate is to sell the cocoa for us.”
“Give us the basis, how much did you receive in the international market price? And how much are you giving to the farmers?”
“All these information is not available to us, so on what basis should we (farmers) even conclude that you have done soo well by increasing the price by 45%.”
Council Chairman Ismaila Pomasi voiced his disappointment on BUSINESS FIX ON ABC IN THE MORNING, arguing that the increase fails to reflect the current international market rates and the exchange rate projected by the Bank of Ghana.
Pomasi highlighted that the international market price for cocoa stands at approximately $9,500 per tonne, with the interbank exchange rate around GHS15.5.
He pointed out that the farmgate price, based on historical calculations, should have been around GHS4,200 per bag if farmers were to receive 70% of the FOB price.
He highlight that the GHS3,000 set by the government falls significantly short of expectations, revealing a stark discrepancy between market realities and the government’s valuation.
The government announcement a 129.36% increase in the producer price, which raises the price to GHS48,000 per tonne from GHS20,908.
However, the Cocoa Abrabopa Association argues that the increase does not adequately respect the economic pressures faced by farmers.
Dr. Matthew Opoku Prempeh, running mate of the New Patriotic Party (NPP) flagbearer, defended the government’s decision during a campaign tour, urging farmers to ignore opposition criticism.
He reiterated the NPP’s dedication to improving the conditions for cocoa farmers, citing past efforts to elevate cocoa prices and reaffirming the party’s continued commitment to their welfare.
