Cocoa farmers to receive historic LID bonus from 1st October
The president of Ghana, Nana Addo Dankwa Akufo-Addo, has announced the new cocoa producer price for the 2020/21 season as GHS10,560 per tonne translating to GHS660 per bag.
“Nananom, beginning 1st October 2020, I am happy to announce the award of a new cocoa producer price of GH¢10,560 per metric ton, equivalent to GH¢660 per bag for the coming 2020/21 crop year,” disclosed the President.
President Nana Addo Dankwa Akufo-Addo made the announcement when he launched the Cocoa Rehabilitation Programme, in Sefwi Wiawso, as part of his 3-day tour of the Western North Region.
Cocoa Producer Price
The producer price is the price at which the country’s cocoa sector regulator – Ghana Cocoa Board (COCOBOD) – buys the produce of cocoa farmers at the farmgate.
The prevailing cocoa producer price for the 2019/20 season is GHS515 per 64kg bag of beans, which was an 8.42 percent increase over the GHS475 per bag in the 2018/19 season.
Living Income Differential (LID)
Besides announcing the 2020/21 producer price, President Akufo-Addo also officially launch the historic Living Income Differential (LID) bonus payment on every bag of cocoa purchased.
“By this new producer price, we have kept faith with our commitment, under the international arrangement with Côte d’Ivoire and global stakeholders, by awarding to our farmers the full four hundred United States dollars per metric ton (US$400/MT) Living Income Differential (LID),” he said.
The President continued, “By this substantial increase in the producer price, we are also delivering on our 2016 manifesto promise to reward handsomely the hard work of our cocoa farmers and their unequalled contribution to the economy of Ghana over the years.”
Touching on the unstable nature of cocoa prices on the world cocoa market, President Akufo-Addo stated that “it remains one of the biggest challenges to ensuring payment of decent farm-gate prices to our cocoa farmers.
With Ghana and Cote d’Ivoire responsible for 65% of the raw cocoa beans used in making chocolates, the President bemoaned the fact that cocoa farmers from the two countries just received US$6 billion from the over $100 billion chocolate industry.
This, he explained, is the meagre return that hardworking farmers get from their toil.
Per the LID, cocoa farmers in Ghana and Ivory Coast will receive $25 or GHS145 ($1=GHS5.8 exchange rate) extra cash for every bag of cocoa they sell.