Ghana's cocoa regulator, COCOBOD, has set the farmgate price for cocoa farmers at GH¢48,000 per tonne, or GH¢3,000 for a 64-kilogramme bag for the 2024/2025 crop season.

This represents a 45 percent increase in the producer price compared to April 2024 and a 129 percent increase from the September 2023 price.

In a circular issued by COCOBOD, it emphasised that the new producer price takes effect on Wednesday September 11, 2024.

The announcement follows COCOBOD's negotiations with the government to raise the producer price for cocoa farmers in an effort to curb smuggling and improve their livelihood as the new crop season begins.

History of Cocoa Prices

The world market price of cocoa has experienced significant volatility over the past 12 months. Spot prices started at around US$2,000 per tonne in March 2023, reached a peak of US$12,072 per tonne in February 2024, and then dropped to US$7,960 per tonne in September 2024.

On the futures market, where Ghana has been trading for over 50 years, prices started at $2,200 per tonne in March 2023, rose to over $10,000 per tonne in February 2024, and then fell to $6,246 per tonne in September 2024.

The extreme fluctuations in prices highlight the need for thorough analysis before any pricing decisions are made in the market and sector.

PPRC has announced an increase in the producer price of cocoa to GH¢48,000 per tonne for the 2024/25 cocoa season. A 129% upward adjustment from the price announced in Sept. 2023, setting new price of 64kg bag of cocoa at GH¢3,000 effective today.#ProducerPrice#PriceIncrease pic.twitter.com/6lyMriI3EX

— Ghana Cocoa Board (@ghcocobod) September 11, 2024