![Ghana’s cocoa procurement prices to rise by almost 45% [World News]](https://foodcom.pl/wp-content/uploads/2023/09/Foodcom_World_News_Global_Stock-1520x760.jpg "Ghana’s cocoa procurement prices to rise by almost 45% [World News]")
- Ghana is raising cocoa farmgate prices by almost 45% for the 2024/2025 season, which is about to begin.
- The change is aimed at aligning farmgate prices with global cocoa prices, thereby improving grower welfare and reducing smuggling.
- An improved harvest and possible price stabilisation is forecast for next season.
- Low cocoa yields for the third consecutive year have led to an increase in the global cocoa deficit.
Increase in cocoa procurement prices to improve the situation for growers
Already in April, in Côte d’Ivoire and then in Ghana, a mid-season increase in cocoa procurement prices was decided. In Ghana, the increase amounted to 58%. Despite this, farmers did not benefit significantly from the price increase. Domestic cocoa contracts are as high as $10 000, while the market value of cocoa for Ghana after the increase will be about $4,715. The increases in farmgate prices last season did not reflect the increase in global prices. This led to grower discontent and the development of cocoa smuggling.
An increase in cocoa farmgate prices has been announced for the 2024/2025 season, which begins this month. At the beginning of the month, a price increase of between 45-70% was estimated. Cocobod – Ghana’s cocoa marketing board – decided to increase the price to $3070 per tonne (48 000 cedi), an increase of almost 45%. This is the maximum possible procurement price that will ensure the smooth operation of Cocobod.
Cocoa production in the 2023/24 season versus projections for the 2024/25 season
Cocoa prices rose sharply in the 2023/24 season. This was caused by poor yields due to crop diseases and adverse weather conditions. The problems particularly affected Ghana and Côte d’Ivoire, two countries that account for 60% of global cocoa production. The lowest harvest in 20 years has led to a third consecutive deficit season and an increase in the global cocoa deficit from 439 to 462,000 tonnes, as well as an increase in cocoa prices. The precarious market situation has caused both countries to keep a close eye on the measures taken and to work together to appropriately modulate prices, stabilise the market and improve the welfare of growers.
An increase in cocoa yields is anticipated for the 2024/25 season. A reduced target of 650,000 tonnes was previously set, but it is estimated that yields could exceed this figure. Weather conditions have improved and many farms have recovered from disease and damage caused by, among other things, attempts at illegal gold mining.
