Ghana set to raise cocoa farmgate price by nearly 45%, sources say
Price rise needs Cabinet approval
Ghana also increased prices in April
Price increase in Ivory Coast could follow
By Maxwell Akalaare Adombila
ACCRA, Sept 2 (Reuters) -Ghana will increase the state-guaranteed price paid to its cocoa farmers by nearly 45% for the 2024/25 crop season, two sources with knowledge of the price review told Reuters, to help boost their incomes and deter bean smuggling out of the country.
The world's number two cocoa producer raised the farmgate price by more than 58% to 33,120 cedi ($2,123.08) per metric ton, or 2,070 cedi per 64 kilogram (kg), in April for the rest of the 2023/24 season.
The mid-season price hike came after top cocoa producer, neighbouring Ivory Coast, raised its farmgate price to 1,500 CFA francs (US$2.55), or around 40 cedis, per kg for the April-to-September mid crop of the 2023/24 season, up from 1,000 CFA francs last season.
One source said Ghana's cocoa producer price review committee had pegged the price at 48,000 cedi per ton, translating to 3,000 cedi per 64 kg of cocoa, for the 2024/25 season due to begin later in September, an increase just shy of 45%.
The source said the decision would be sent to the cabinet pending an announcement.
Both sources asked for anonymity because the decision is not yet public.
The second source said it was unlikely that the cabinet would change the committee's decision, saying also the price could not be increased beyond 48,000 cedis per ton without pushing Cocobod, Ghana's cocoa marketing board, into a deficit.
Ghana's price will also have to align with Ivory Coast's 2024/25 farmgate price, which has yet to be announced, the person added.
The two biggest cocoa growing countries set up an initiative to coordinate farmgate prices and cocoa supplies to help sustain the sector and boost their farmers' incomes.
Cocoa prices have been buoyant this year as disease and adverse weather in Ghana and Ivory Coast, which together supply more than 60% of the world's cocoa, pushed the market to a third successive deficit.
The International Cocoa Organization on Thursday raised its global cocoa deficit forecast for the 2023/24 season (October-September) to 462,000 tons from 439,000 tons, saying the market was headed for a 45-year low stocks-to-grindings ratio.
Cocobod previously planned to launch the 2024/25 season on Sept. 1, earlier than usual, with a reduced production target of 650,000 tons, but both sources said the opening will be later.
Opening the season earlier was aimed at helping reduce bean smuggling, which has been incentivised by low prices and delayed payments to farmers.
Some of Ghana's cocoa farmers and licensed buyers accused both sides of hoarding beans to benefit from the proposed price hike in the new season.
($1 = 15.6000 Ghanian cedi)
($1 = 587.4800 CFA francs)
Reporting by Maxwell Akalaare Adombila; Editing by Portia Crowe and Barbara Lewis
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.