News:
October 5, 2015
The Minority New Patriotic Party (NPP) Caucus in Parliament is demanding for a further upward adjustment of cocoa prices to reflect the prevailing prices on the international market.
In their estimation, Ghana’s cocoa beans are fetching more than US$3,000 per metric tone on the international martets with a further premium price between 15 and 20 percent because of its high quality.
With these positive trends coupled with the depreciation of the Cedi against the US Dollar, the Minority contends that a higher price other than the GH₵420.00 per bag of the commodity as announced by the government Friday will be rewarding enough to the hard working Ghanaian cocoa farmer.
“Cocoa is fetching more than US$3,000 per metric tone on the international markets. On top of that, our cocoa attracts a price premium of between 15 and 20 percent because of its high quality. These positive market trends and the rapid depreciation of the Cedi against the US Dollar should enable the government to offer the cocoa farmers more than the GH₵420.00 per bag which it has now fixed for the coming 2015/2016 season,” a statement released by Minority in Accra Monday quoted its Ranking Member, Food and Agriculture Committee, Dr. Owusu Afriyie Akoto as saying.
He added “by underpaying the cocoa farmer, government is continuing a policy which has undermined the cocoa industry in Ghana.”
Below is the full statement:
PRESS STATEMENT BY THE MINORITY IN PARLIAMENT
On Friday 2nd October 2015, the government announced a new cocoa produce price for the current 2015/ 2016 season. The new price is GH₵ 6,720 per metric tonne, which is equivalent to GH₵420 per bag of 46kg. The new price compares with the 2014/2015 price of GH₵5520 per metric tonne, equivalent to GH₵345 per bag, is an increase of 21.7 percent.
The price of cocoa on the international markets and the exchange rate of the Ghana Cedi against the US Dollar are major considerations in fixing the producer price of cocoa.
These two factors have become even more paramount given the sharp drop in cocoa production to barely 700,000 metric tonnes in the just ended 2014/2015, from the peak of one million metric tonnes in 2010/2011.
Cocoa is fetching more than US$3,000 per metric tonne on the international markets. On top of that, our cocoa attracts a price premium of between 15 and 20 percent because of its high quality. These positive market trends and the rapid depreciation of the Cedi against the US Dollar should enable the government to offer the cocoa farmers far more than the GH₵420 per bag which it has now fixed for the coming 2015/2016 season.
By underpaying the Cocoa farmer, government is continuing a policy which has undermined the cocoa industry in Ghana.
Signed: Dr. Owusu Afriyie Akoto, Ranking Member, Food and Agriculture Committee