According to two people with knowledge of the pricing review, Ghana will increase the state-guaranteed price paid to its cocoa farmers by roughly 45% for the 2024–2025 crop season in an effort to increase farmers’ earnings and discourage bean smuggling out of the nation.
For the remainder of the 2023–24 season, the world’s second-largest cocoa producer increased the farmgate price by over 58% in April, to 33,120 cedi ($2,123.08) per metric ton, or GH¢2,070 cedi every 64 kilograms (kg).The neighboring Ivory Coast, a leading cocoa producer, increased its farmgate price for the April through September mid-crop of the 2023–24 season to 1,500 CFA francs (US$2.55), or roughly 40 cedis, per kg. This marked a boost in mid-season prices. The previous season’s price was set at 1,000 CFA francs. According to one source, Ghana’s cocoa producer price review committee set the price for the 2024–25 season, which is scheduled to start later in September, at 48,000 cedi per ton, or 3,000 cedi each 64 kg of cocoa.
This represents an increase of just under 45%.According to the source, the cabinet would be consulted before making a statement on the decision. The decision has not yet been made public, thus both sources requested to remain anonymous. According to the second source, there was little chance that the cabinet would overturn the committee’s decision. They added that raising the price over 48,000 cedis per ton would result in a loss for Ghana’s cocoa marketing body, COCOBOD.According to the source, Ghana’s pricing will also need to match the farmgate price for Ivory Coast in 2024–2025—which has not yet been revealed. The two nations that grow the most cocoa launched an endeavor to synchronize cocoa supplies and farmgate pricing in order to support the industry and increase cocoa farmers’ incomes. This year has seen a rise in cocoa prices as the market reached a third consecutive shortfall due to illness and unfavorable weather in Ghana and Ivory Coast, which together provide more than 60% of the world’s cocoa.
The market is expected to reach a 45-year low in the stocks-to-grindings ratio, according to the International Cocoa Organization, which increased its prediction for the worldwide cocoa deficit for the 2023–2024 season (October–September) to 462,000 tons from 439,000 tons on Thursday. With a lower output target of 650,000 tons, COCOBOD had originally intended to open the 2024–25 cocoa season on September 1, sooner than normal. However, according to both sources, the opening will take place later.
The goal of early cocoa season opening was to lessen the incentive for cocoa bean smuggling, which has been fueled by poor prices and unpaid farmers. A number of licensed buyers and cocoa farmers in Ghana have accused both parties of hoarding beans in order to profit from the projected price increase for the upcoming cocoa season.
SOURCE https://dew360.net
Join our WhatsApp channel: https://whatsapp.com/channel/0029VakDz4u9RZATWh53yC1a
