Ghana keeps cocoa producer prices unchanged despite global market decline

Ghana has decided to maintain cocoa producer prices despite a fall in international market prices, a move aimed at protecting farmers' incomes and livelihoods, according to the Ghana Cocoa Board (COCOBOD).

Speaking on JoyNews' PM Express on Monday, COCOBOD's Head of Public Affairs, Jerome Sam, said the decision reflected the government's commitment to supporting cocoa farmers during a period of market volatility.

Mr Sam said Ghana's cocoa pricing system has traditionally provided stability for farmers, with producer prices typically set at the beginning of the season and remaining unchanged until the next review.

"This is a conventional thing, and it has been a practice all this while," he said.

"At the beginning of the season, an official announcement will come, and then when we also get to the light crop season, there will also be an announcement."

He explained that, under normal circumstances, the producer price announced at the start of the season remains in place throughout the period.

However, he noted that exceptional developments in the cocoa sector over the past year led authorities to review prices earlier than expected.

"Something happened this year. Starting from the beginning of last year, which goes into this year, something happened, so we had to have a change in the price somewhere in February," he said.

Mr Sam said the adjustment attracted public attention but was considered necessary to safeguard a sector that remains a significant contributor to Ghana's economy.

He said the latest decision to keep producer prices unchanged was driven largely by concerns about farmers' welfare.

"Government took into consideration the income levels of the ordinary farmer. That is basically the first thing government took into consideration," he said.

According to Mr Sam, a strict response to movements in the international cocoa market would have resulted in a reduction in producer prices.

"If we are to consider what is prevailing on the international market, then of course the price would have gone down again," he said.

Drawing comparisons with neighbouring Côte d'Ivoire, the world's largest cocoa producer, Mr Sam said farmers there experience more frequent price adjustments linked to global market conditions.

"They are having changes as and when the prices dip," he said.

Ghana, however, chose to maintain existing prices to cushion farmers from further financial pressure.

"We took a decision that the farmer has already been hit, so we need to make sure that the prices remain unchanged, so we can end the season," he added.

Mr Sam said the government was seeking to strike a balance between protecting farmers' incomes and ensuring the long-term sustainability of the cocoa sector.

"Inasmuch as we are protecting the farmer, we are also ensuring a sustainable sector which will continue to play that major role in the lives of the farmers, as well as the economy," he said.

He added that the welfare of cocoa farmers remained at the centre of the government's decision-making.

"I can tell you that the government was largely very concerned about the income and livelihood of the ordinary cocoa farmer."