Ghana is set to raise the guaranteed price paid to cocoa farmers by nearly 45% for the 2024/25 season, aiming to enhance farmer incomes and tackle cocoa bean smuggling. The new price will be 48,000 cedis per tonne, equating to 3,000 cedis for every 64 kg of cocoa. This increase follows a mid-season price adjustment to 33,120 cedis per tonne in April 2024, which represented a 58% rise from the previous rate.
This decision aligns with similar moves by Ivory Coast, the world’s leading cocoa producer, which also raised its farmgate price for the April-to-September mid-crop. Ghana’s price increase is awaiting cabinet approval but is anticipated to match Ivory Coast’s yet-to-be-announced price for the 2024/25 season. Both countries have launched a joint initiative to synchronize cocoa prices and supplies to bolster the industry and improve farmer livelihoods.
An anonymous source noted, “The price could not be increased beyond 48,000 cedis per tonne without pushing Cocobod, Ghana’s cocoa marketing board, into a deficit.”
Global cocoa prices have risen due to disease and adverse weather conditions affecting Ghana and Ivory Coast, which together supply over 60% of the world’s cocoa. This has resulted in a third consecutive market deficit. The International Cocoa Organisation (ICO) recently updated its global cocoa deficit forecast for the 2023/24 season to 462,000 tonnes, anticipating a 45-year low in the stocks-to-grindings ratio.
With a lower production target of 650,000 tonnes, Cocobod initially planned to start the 2024/25 season on September 1st. However, sources suggest a delayed start may now be expected. The earlier start was intended to address cocoa bean smuggling driven by low prices and delayed payments. Some farmers and licensed buyers are reportedly hoarding beans in anticipation of the upcoming price increase.
