Cocoa farmers of sefwi Bodi, Juaboso and Akontombra are unhappy about the new producer price of cocoa announced by Nana Addo’s government in this economic hardship. higher cost of living, a higher increase in electricity bills, communication service tax, bad environment for business activities and among others.
Since this government assumed office in 2017, there is no pesewa added to cocoa price for two years but to make an increment in 2019/2020 cocoa season, the government added only gh40 and It is a fact that in the Last 3 years Nana Addo’s government has only added 40 Ghana cedis to the existing price of 475 which we understand it as a cheat and way of stealing farmers.
To be sincere and honest to cocoa farmers, the government of Ghana over the years considered some factors that determine the producer price of cocoa, these are some of the factors;
a. World market price (Free On Board price
of cocoa).
b. Premium receipts (quality of cocoa
produce)
c. The exchange rate (cedi and dollar
relationship)
d. Cost of Operation
All things being equal, the exchange rate is favorable for the huge producer price of cocoa. To expand and explain the above factors, the FOB price of $2300 secured for the 2019/20 crop year is higher than the 2018/19 price of $2200. We should be mindful of the fact that Ghana through forwarding sales has sold the 2019/20 produce, even though we are yet to harvest.
Now let us do these basic mathematics by using our exchange rate.
PREMIUM INCLUSIVE
a.
2016/17 cocoa season, $1=gh3.9
FOB price+Premium $2950 (Per tonne which is
16 bags), so gh3.9×$2950=ghc11,505
Value in ghc11,505
NOTE, NO PREMIUM ADDED
b.
2019/20 cocoa season, $1=gh5.3
FOB price-Premium $2300 (Per tonne which is 16 bags), so,
gh5.3×$2300=ghc12,190
Value in ghc12,190
If the government had added the premium receipts to the FOB price of cocoa, the price per bag of cocoa as of today would have been not less than ghc800. Let us also note that, if the government has even overlooked premium receipts and rogue farmers, the cocoa price for farmers should have been ghc630
We haven’t forgotten how President Mahama government increased producer price of cocoa for 2016/2017 to ghc475 indicating an increase of ghc263 over his 4 year period from our late president Atta Mills ghc212
Story by Emmanuel koranteng |DFM|DIKODER.COM|