At a press conference in Accra, Dr Owusu Afriyie Akoto, the Minister of Food and Agriculture, said the new price will come into effect on Friday, 7 October, and will mean that farmers will receive GH₵12,800 per metric tonne up from GH₵10,560.
The producer price represents 89.99% of the net FOB (Free On Board) value. This figure translates into GH¢800 ($76.13) per bag of 64 kg. gross weight.
Dr Akoto said the 21% rise in the producer price of cocoa was a testament to the Government’s resolve to “ensure farmers earn a decent income and make cocoa farming lucrative”.
The move comes amid growing fears that cocoa from Ghana may be banned from the EU when new due diligence legislation comes into place in 2023.
Speaking at the second Edition of Orange Cocoa Day 2022 in Accra, Irchad Razaarly, European Union Ambassador to Ghana, said the EU’s legislation on afforestation and forest degradation must not be seen as a threat to Ghana’s cocoa sector. He also told delegates that as far as he was aware, the EU has not placed a ban on Ghana's cocoa from entering the European market.
He said the EU was in support of Ghana and Cote d’Ivoire meeting the export requirements.
“The call for more sustainable cocoa production is growing globally. And our citizens in Europe are increasingly demanding measures for ensuring that cocoa and other commodities are produced in a socially environmentally sustainable way. This explains EU’s legislation on afforestation and forest degradation and must not be seen as a threat to Ghana’s cocoa,” Razaarly said.
According to the Ghana News Agency, Dr Akoto also said the Government, through COCOBOD, was developing the Cocoa Management System (CMS) to enable Ghana to meet the EU due diligence requirements.
Once completed, he said, the CMS will establish a national mandatory traceability system that will be transparent and accountable. “This will ensure that all Ghana cocoa beans are traceable from the port of shipment to the plot of land that produced the beans.”