Cocoa Price Increase Not News — Cocoa Farmers Association

President of the Cocoa Farmers Association, Mr Anane Boateng, has described the increase in the producer price of cocoa for the new season as nothing new, saying the 70% share of the cocoa price allocated to farmers is required by law.

Speaking in an interview with Kofi Boakye on Nkwantannanso on Opemsuo Radio, Mr Boateng said the provision was introduced through amendments to the Cocoa Bill and should therefore not come as a surprise whenever the price of cocoa increases.

He explained that the arrangement links the price paid to cocoa farmers to developments in the world cocoa market and foreign exchange.

“The increase in the new cocoa season is not news. We were here when the Cocoa Bill was passed with amendments, which provides that when the cocoa price increases, 70% of that price should be paid to cocoa farmers,” he said.

According to him, the same principle should apply when the world market price of cocoa falls, meaning the amount paid to farmers would also have to be adjusted.

He said the arrangement is not a political matter but a legal framework that should be followed regardless of whether cocoa prices are rising or falling.

Mr Boateng also rejected suggestions that the 70% arrangement could encourage farmers to cut down their cocoa trees because of possible price reductions.

“This is not a party issue; it is a law we agreed on. If the arrangement is that 70% should go to farmers, then we should follow it,” he stated.

He explained that both the international price of cocoa and foreign exchange movements affect the price of cocoa in Ghana, making regular adjustments necessary.

Mr Boateng said the system therefore provides a basis for adjusting the producer price in line with changes in the international market.

“We have to have a price adjustment structure because two things determine the price of cocoa: the world market price and foreign exchange. So, if the cocoa price increases, they have to increase the price paid to farmers, and if it goes down, they have to decrease the amount paid,” he explained.

He said the arrangement had addressed a major concern surrounding cocoa pricing and should be understood as the implementation of an existing legal provision.

“With this, we have solved the cocoa issue, unless someone does not understand it,” he added.