Ghana Raises Cocoa Prices by a Historic 129%
Ghana's government has made a historic decision, increasing the producer price of cocoa by over 129%. The new price came into effect on September 11, 2024, marking a major shift for the country's cocoa industry.
The goal is to protect farmers from global market fluctuations by providing a stable price. The government also plans to continue supporting initiatives like the cocoa fertilization and rehabilitation program. These programs aim to supply drought-resistant seeds and early-yielding planting materials.
Earlier in April 2024, Ghana made headlines by rejecting foreign financing for its cocoa industry for the first time in 32 years. The government also raised cocoa prices by 58% at mid-season, following a similar move by C么te d'Ivoire.
Amid this volatility, the Moscow Exchange has announced plans to launch cocoa futures contracts. These contracts will reflect global cocoa price trends and will be settled through U.S. ports. Contracts will be available in March, May, July, September, and December, with a minimum order size of 10 kilograms.
Ghana鈥檚 129% price increase is a game-changer for the country's cocoa farmers. This decision not only protects farmers from market volatility but also stimulates local economies. As one of the world鈥檚 leading cocoa producers, Ghana's move could influence global cocoa markets. With prices fluctuating globally, it鈥檚 important to keep a close eye on how these changes impact both the domestic and international cocoa trade.
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Unprecedented Price Hike for Cocoa Farmers
The producer price for the 2024/25 season is now set at 48,000 cedis per ton (2,745 euros per ton). This is a huge jump from the 2023/24 season鈥檚 price of 20,900 cedis per ton. According to Minister of Food and Agriculture Dr. Brian Acheampong, this 129.36% increase is the largest in the country's history.The goal is to protect farmers from global market fluctuations by providing a stable price. The government also plans to continue supporting initiatives like the cocoa fertilization and rehabilitation program. These programs aim to supply drought-resistant seeds and early-yielding planting materials.
Economic Boost Expected in Cocoa Regions
The price increase is expected to boost local economies in cocoa-growing regions. Higher earnings for farmers could lead to growth in local businesses and infrastructure.Earlier in April 2024, Ghana made headlines by rejecting foreign financing for its cocoa industry for the first time in 32 years. The government also raised cocoa prices by 58% at mid-season, following a similar move by C么te d'Ivoire.
Global Cocoa Prices Experience Major Swings
Global cocoa prices have been highly volatile in the past year. In March 2023, spot prices averaged around $2,000 per ton. By February 2024, prices peaked at $12,072 per ton. However, by September 2024, prices had dropped sharply to $7,960 per ton.Amid this volatility, the Moscow Exchange has announced plans to launch cocoa futures contracts. These contracts will reflect global cocoa price trends and will be settled through U.S. ports. Contracts will be available in March, May, July, September, and December, with a minimum order size of 10 kilograms.
Ghana鈥檚 129% price increase is a game-changer for the country's cocoa farmers. This decision not only protects farmers from market volatility but also stimulates local economies. As one of the world鈥檚 leading cocoa producers, Ghana's move could influence global cocoa markets. With prices fluctuating globally, it鈥檚 important to keep a close eye on how these changes impact both the domestic and international cocoa trade.
Click here to reach our trading platfrom聽CMBroker