Ghana raised cocoa farmers’ pay by 21%, below the increase growers in the second-biggest producer had demanded to counter soaring inflation and a weaker currency.
At ¢660 last year, a farmer buys 16 bags of cement with a bag of cocoa. At ¢800, same buys only 10 bags of cement. Farmers expected ¢1,200 new prices to cover the inflation.
Farmers will receive 12,800 cedis ($1,219) a ton, or 800 cedis per bag of 64 kilos, for the season that begins Oct. 7, Agriculture Minister Owusu Afriyie Akoto said in a speech in Accra. That’s up from 10,560 cedis a ton for last season. The announcement was delayed from last week due to ongoing negotiations.
The price, which is equivalent to 90% of the freight-on-board value will still disappoint farmers who wanted their income to double.
While favourable weather has led to good crop prospects, growers have been hit by a shortage of farm inputs due to higher prices and logistics disruptions in the wake of Russia’s war in Ukraine. Those issues have also affected Ivory Coast, the top producer.
Ivory Coast last week raised its farmgate price by 9% for the main crop. Both countries together account for about two-thirds of global cocoa production
