COCOBOD Set To Announce 2026/27 Cocoa Producer Price
The Ghana Cocoa Board (COCOBOD) is expected to announce the official producer price for the 2026/27 cocoa season, with a proposed increase expected to push the farmgate price above the current rate.
COCOBOD is considering increasing the producer price from GH¢2,587 to GH¢2,737 per 64-kilogram bag, representing an increase of about six percent.
The proposed price is reportedly equivalent to about US$240 per bag and is subject to approval by the Minister of Finance before it becomes official.
The anticipated adjustment would further widen the price differential between Ghanaian and Ivorian cocoa farmers.
Under Ghana’s current producer price of GH¢2,587 per 64kg bag, cocoa farmers receive approximately GH¢40.42 per kilogram.
In Côte d’Ivoire, the official farmgate price is reported at 1,200 CFA francs per kilogram.
Using an exchange rate of GH¢1 to 49.49 CFA francs, the Ivorian price translates into approximately GH¢24.25 per kilogram, or about GH¢1,551.83 for a 64kg bag.
On that basis, the current difference between the two countries is about GH¢1,035 per bag, with Ghanaian farmers receiving approximately GH¢16.17 more per kilogram.
An increase to GH¢2,737 would further expand the differential, potentially creating additional incentives for cocoa diversion and cross-border smuggling.
The expected price announcement comes at a difficult period for the global cocoa market, with international cocoa futures recently coming under pressure amid increased supplies from West Africa.
The decline in international prices presents a challenge for Ghana, as COCOBOD seeks to maintain attractive producer prices while managing falling global market revenues.
Ghana’s cocoa output for the 2026/27 season is also projected to decline by about 13 percent to 650,000 metric tonnes, amid concerns over black pod disease and unfavourable weather conditions.
The pricing decision therefore comes as COCOBOD balances the need to provide competitive returns to farmers with the financial pressures created by developments in the international cocoa market.
Maintaining an attractive farmgate price is also expected to form part of efforts to discourage farmers from diverting cocoa across Ghana’s borders and encourage continued production within the domestic sector.
The final producer price for the 2026/27 season is expected to be announced officially by COCOBOD following the necessary approval process.
-Overseeronline.com
Post Comment