Cocobod innovates mechanism to sustain farmers' income

Accra, Sept. 5, GNA - Government has announced the establishment of a stabilisation fund, a local initiative to guarantee stable income for cocoa farmers in the event of a drastic fall in the world market price of cocoa.

Subsequently, it has decided to set aside a total amount of GH¢19.04 million representing GH¢29.30 per tonne of cocoa from the net FOB sharing for the creation of the fund, beginning from the 2008/09 crop season, Finance Minister Kwadwo Baah-Wiredu said on Friday. This means that in the event of a drastic fall in the world market price such that the existing producer price in Ghana could not be maintained, government will use the fund to offset the difference without necessarily reducing the producer price. Mr Baah-Wiredu said the initiative was in line with the global agenda towards a sustainable cocoa economy. 5 Sept. 08