Government announces increment in Cocoa producer price for 2016/2017 season

    /    Oct 1, 2016   /     Ashanti, Business  /    0 Comments  /    1001 Views

Government has announced an increment in Cocoa producer price per bag for the 2016/2017 season.

The Producer Price Review Committee (PPRC) on cocoa which met on met Saturday, 1st October 2016 under the Chairmanship of the Minister for Finance, agreed on a new Producer Price of cocoa which translates into GH¢475 per bag of 64 kg gross weight, up from GH¢425 per bag, representing 77.45% percent of the net FOB.

Last year, the average FoB per tonne of cocoa sold was US$2,900 and this year the average FoB is US$2,950 per tonne.

In cedi terms, this represents a change of only 5.7%.

The Producer Price Review Committee has reviewed upwards the producer price of cocoa from GH¢6,800.00 per tonne to GH¢7,600.00 per tonne for the 2016/17 cocoa season.

As compared to the previous season, this amount represents an increase in price of GH¢800.00 per tonne or 11.76%.

This change is higher than the change in world pricing of cocoa and higher the new producer of Ivory Coast.

Deputy Finance Minister, Cassiel Ato Forson who announced the increment at the 2016 Cocoa Day celebrations at Tepa in the Ahafo Ano North District of the Ashanti Region, said the increment takes effect today, Saturday, 1st October, 2016.

This year’s event was under the theme ‘Transforming the Cocoa sector for Economic Growth-The Role of the Youth’.

Mr Forson indicated that Government shall continue the Stabilization Fund with annual contributions from the FOB price as a risk mitigating mechanism against declines in international cocoa prices.

He further said the primary objective of the Fund was to apply it to sustain the earnings of cocoa farmers in challenging times.

The decision is to continue with the Fund so as to be able to cushion farmers should the world market price begin to decline as we move into the future”.

Some Cocoa farmers, who spoke to Kapital news, expressed mixed reaction about the increment.

While some hail Government for the increment, others said they were dissatisfied as the increment was minimal.

Source: Hafiz Tijani/Kapital971.com

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