Ghana has increased its cocoa farmgate price to GHC8,000 ($1,484) per tonne for the 2019/2020 season beginning October this year.
The price has been stable for the past three seasons and as such the new farmgate price represents 5.2% increment . This was driven by strong sales of export contracts to chocolate makers and cocoa houses.
Farmgate price is the price of the product available at the farm, excluding any separately billed transport or delivery charge.
A source at Ghana Cocoa Board told Reuters, The farmgate price rises from GHS7,600 last season to GHS8,000 ($1,484.81) per tonne in the season starting in October. This translates to GHS500 per bag for the farmers.
In 2018/2019, Ghana is estimated to have produced about 900,000 tons of cocoa beans, a decrease from approximately 969 thousand tons in 2016/2017.
The government of Ghana estimates some 800,000 families in the country are living in part by cocoa farming. West Africa produces 70 percent of the world’s cocoa beans and in Ghana, the beans are the top agricultural exporter .