By Amoako Kwame
Ghana’s cocoa farmers will retain their current producer price for the remainder of the season after government opted against a reduction, despite a decline in global cocoa prices.
The decision, according to the Head of Public Affairs at the Ghana Cocoa Board (COCOBOD), Jerome Sam, was taken to cushion farmers from further financial strain following a difficult production season.
Speaking on Joy News’ PM Express on Monday, Mr Sam explained that Ghana’s cocoa pricing structure traditionally involves announcing a producer price at the start of the main crop season, with a possible review during the light crop period.
He noted, however, that producer prices in Ghana typically remain fixed throughout the season once they are announced.
“This has been the standard practice over the years,” he said.
Mr Sam acknowledged that the current cocoa season has been exceptional due to market disruptions that prompted an unusual mid-season price review in February. He explained that authorities were compelled to intervene to safeguard the sector, which remains a vital contributor to Ghana’s economy.
According to him, the latest decision to maintain the producer price was driven not by international market trends but by government’s commitment to protecting farmers’ livelihoods.
“Government took into account the income levels of cocoa farmers and decided to maintain the current price,” he stated.
Mr Sam disclosed that a strict adherence to prevailing international cocoa prices could have resulted in another downward adjustment.He cited neighbouring Côte d’Ivoire, where producer prices are routinely revised to reflect fluctuations in the global market.
“If we had based our decision solely on international market conditions, the producer price would likely have been reduced,” he said.
He stressed that government considered the economic difficulties farmers have already faced and sought to prevent additional hardship.
“The farmer has already absorbed significant shocks, so it was important to keep prices stable,” he added.
Mr Sam said maintaining the current producer price would give farmers some certainty as the season concludes, while policymakers continue discussions on measures to ensure the long-term sustainability of the cocoa industry. He assured stakeholders that any future pricing decisions would be communicated after the end of the season.
According to him, the challenge for government is balancing farmers’ incomes with the long-term sustainability of the cocoa sector.
“While supporting farmers, we must also ensure the sustainability of the industry,” he said.
He reiterated that concerns about the welfare and livelihoods of cocoa farmers were central to the decision to maintain the existing producer price
