Cocoa Price Maintained to Avert Production Drop – COCOBOD
The Chief Executive Officer of the Ghana Cocoa Board, Joseph Boahen Aidoo has disclosed that government decided to maintain the Producer Price of Cocoa to prevent a fall in the production of cocoa beans for the 2017/2018 crop season.
Some observers have questioned why government maintained cocoa price at 7,600 cedis when the price of the commodity has fallen by about 30 percent on the world market.
Responding to a question on the issue, Mr. Boahen Aidoo explained that COCOBOD is cutting down on its operational cost to cushion government from the impact of the drop in the world price.
“The decision was in the right direction to encourage cocoa farmers to maintain their production capacity. Any move to drop the price would be affected cocoa production for the season. In view of this, we are cutting down on our operational cost,” he said.
Mr. Boahen Adu pointed out that the Nana Addo government has done well in maintaining the price to improve the welfare of cocoa farmers.
“It is instructive to note that, all cocoa producing countries have reduced the producer price to reflect world market trend. In keeping faith with the Ghanaian cocoa farmer to sustain their livelihoods, the NPP government maintained the produce price which is 83 percent of the gross FOB leaving 17percent for operations,” he said.
He explained that even though the world market price of cocoa has fallen by an average of 30 percent from U$2,950 per tonne in 2016/2017 to an average of US$2,080 per tonne in 2017/2018, “the farm gate price on the other hand has remained the same at 7,600 cedis per tonne”.
He explained that the producer price of 7,600 cedis per tonne paid in 2016/2017 formed 65 percent of the gross FOB of US$ 2,950 per tonne.
“In the 2017/2018 season the producer price of 7,600 forms 83 percent of the gross FOB of US$2,080 per tonne,” he added.