Ghana’s cocoa regulator, COCOBOD is planning to raise cocoa farmgate prices for farmers by about 45 percent for the 2024/2025 crop season, Reuters has reported.

Sources familiar with the matter who spoke with the portal, stated that the decision to review farmgate prices is aimed at boosting cocoa farmers' income and curbing rampant smuggling of cocoa beans from Ghana to other parts.

One source, speaking on condition of anonymity, told Reuters that the price review committee overseeing the raise had set the farmgate price at GH¢48,000 per ton, which translates to GH¢3,000 cedi per 64 kg of cocoa, for the upcoming 2024/25 season set to begin in September.

However, the decision is yet to be finalised by Ghana's cabinet before an official announcement can be made.

If approved, Ghana's decision to raise the farmgate price will align with Cote d'Ivoire's 2024/25 farmgate price, which is also pending formal announcement by the country’s cocoa regulator.

In the 2023/2024 crop season beginning in April, COCOBOD raised the farmgate price by more than 58 percent to GH¢33,120 ($2,123.08) per metric ton, or GH¢2,070 per 64 kilograms (kg).

This development followed Ivory Coast's hike in its farmgate price to 1,500 CFA francs (US$2.55), or around GH¢40, per kg for the April-to-September mid-crop of the 2023/24 season.

Collectively, Ivory Coast and Ghana account for about 60 percent of the global supply of cocoa beans, but production has been hindered by adverse weather conditions, diseases, and environmental degradation activities that have disrupted the supply value chain.

On August 29, 2024, the International Cocoa Organization (ICO) raised its global cocoa deficit forecast for the 2023/24 season (October-September) to 462,000 tons from 439,000 tons.

This is based on projections that the global market was heading towards a 45-year low stocks-to-grindings ratio.

With additional files from Reuters

MA/AE