My first post in the new year reports some good news for Ghanaian cocoa farmers. On January 8, Ghana’s Cocoa Board increased producer prices from G¢2208 ($1,530) to G¢2400 (1,663) per ton.
Continuing high world market prices and the threat of increased smuggling to the Côte d’Ivoire are obviously factors behind this move. Alhaji Alhassan, the head of the cocoa farmers association, admitted as much when he called on farmers to appreciate the governments moves and stop smuggling cocoa to neighboring countries.
According to Minister of Finance, Dr. Kwabena Duffour, the new price represents 72.16 percent of the net export price COCOBOD receives. But that means the COCOBOD only receives about $2,300 per ton. Given that Ghanaian cocoa commands a premium price on world markets I wonder where the other $1,000 disappear. I know that it is in large part due to the contractual terms. Most cocoa deliveries are committed long before harvest and spot market purchases which would yield a price closer to the world market price are rare. Still, $1,000 per ton seems like a large difference.
