The Ghana Civil Society Cocoa Platform has urged the government to review its cocoa marketing strategies to ensure farmers reap the full benefits of the recent surge in global cocoa prices.
This call comes as international cocoa prices hit notable highs, with New York cocoa reaching its highest point in three and a half weeks and London cocoa recording a two-and-a-half-month peak.
The global increase in cocoa prices is being fueled by heightened fund investments and concerns about dry weather conditions in West Africa, which could reduce cocoa output in the region. This global trend aligns with Ghana’s decision to raise the cocoa producer price from GH¢3,000 to GH¢3,100 per 64 kg bag.
Forecasting agency Maxar Technologies has reported hot and dry weather conditions in parts of Ghana and Nigeria, which could negatively impact the upcoming cocoa mid-crop season set to begin in April. Additionally, indications of declining cocoa quality are further driving prices upward.
Speaking to Channel One News, Obed Owusu Addai, Co-Convenor of the Ghana Civil Society Cocoa Platform, emphasized that although Ghana’s regulated market shields local cocoa prices from direct global fluctuations, it is crucial for the Ghana Cocoa Board (COCOBOD) to adjust its marketing strategies to better serve farmers.
“We understand that COCOBOD is trying to balance marketing efforts, as there is some protection for forward sales. When a contract is locked in, it ensures that traders will pay the agreed amount, regardless of market fluctuations. This guarantees payment, the co-convenor of the Ghana Civil Society Cocoa Platform noted.
He also said: “However, the issue is that COCOBOD needs to recognize this. We know they are aware of the downward trend in productivity across the globe—especially in Asia, South America, and West Africa. Due to this decline in production, there will be a shortage of cocoa on the market. Basic economic principles tell us that when there is scarcity, prices will rise. Therefore, we believe COCOBOD should analyze these trends and develop a more effective marketing strategy than what is currently in place.”
source: citinewsroom.com
