Ghana increases cocoa price by a substantial 45%.
To combat rising smuggling and aid farmers, the Ghanaian administration boosted cocoa prices nearly by half. The set buying price for a 64-kg sack of cocoa beans during this year's harvest period is $192 (roughly €174), according to the Ministry of Agriculture. This is a rise of 45%. Ghana ranks second globally in cocoa production.
The new price is in effect right away, disclosed Agriculture Minister Bryan Acheampong. Ghana had already hiked cocoa prices in April. Therefore, farmers now get $3000 per tonne of cocoa beans.
However, the global market price hovers around $7000. In Ghana, where the government dictates the price and farmers must sell their yield to the state-run Cocobod, growers are increasingly shipping cocoa beans illegally out of the nation to sell them at those prices.
The cocoa industry contributes substantially, about 10%, to Ghana's GDP. Around a million individuals, residing in a nation of roughly 33 million inhabitants, rely on cocoa farming as their primary source of income.**
The hike in cocoa prices has unfortunately led to an increase in smuggling activities, with farmers illegally exporting their yields to foreign markets to sell at higher global prices. Despite the new price of $3000 per tonne, the government-set price still significantly lags behind the global market rate of $7000.
