Ghana’s Cocoa Regulator Set to Boost Farmers’ Earnings with a 45% Price Increase for 2024/25 Season

Ghana’s cocoa regulator is poised to increase the state-guaranteed price paid to cocoa farmers by nearly 45% for the 2024/25 crop season, according to a recent report by Reuters. If confirmed, this would mark the second consecutive price hike, following a significant 58% increase earlier this year. In April, the farmgate price for cocoa was raised to 33,120 Ghana cedis per ton (approximately $2,499 USD) in response to growing market demands and challenges within the industry.

This move aims to improve the livelihoods of cocoa farmers, who are crucial to Ghana’s economy, and to discourage the smuggling of cocoa beans out of the country to neighboring markets. Furthermore, the Ghana Civil Society platform has advocated for an even higher minimum farmgate price of $3,662 per ton for the upcoming season, emphasizing the need for greater income support for farmers amid rising production costs and market volatility.

The cocoa sector has faced significant challenges this year due to plant diseases and erratic weather conditions, causing cocoa prices to spike globally. Every September, Ghana’s government announces new farmgate prices for the forthcoming cocoa season, which spans from September of the current year to August of the following year. These adjustments ensure that cocoa farmers are compensated fairly, helping to stabilize the sector and maintain Ghana’s position as one of the world’s leading cocoa producers.

This price increase is part of a broader effort to ensure sustainability in the cocoa industry while addressing the economic needs of farmers, many of whom depend on cocoa farming as their primary source of income.