Farmer welfare drove cocoa pricing decision – COCOBOD

Head of Public Affairs at COCOBOD, Jerome Sam, has defended the government's decision to intervene in cocoa pricing during the current season, describing the move as an extraordinary but necessary measure to protect farmers and preserve the cocoa sector.

Speaking on JoyNews on Monday, he said that the producer prices announced at the start of the season typically remain unchanged, but unusual developments in the cocoa market over the past year compelled authorities to make an exception.

“It is quite unfortunate, something happened that was this year. So, starting from the beginning of last year, which goes into this year, something happened, so we have to have a change in the price somewhere, in February, which led to all these conversations,” he explained.

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According to him, Ghana's cocoa pricing system usually allows for producer prices to be announced at the beginning of the main crop season and reviewed again during the light crop season.

“This is a conventional thing, and it has been a practice all this while. At the beginning of the season, an official announcement will come, and then when we also get to the light crop season, there will also be an announcement,” he said.

He noted that the welfare and income levels of cocoa farmers were the primary factors that informed the decision.

“The government took into consideration the income levels of the ordinary farmer. That is basically the first thing the government took into consideration,” he stated.

Sam stressed that the intervention was carefully considered and aimed at protecting a sector that remains critical to Ghana's economy.

“I think it was necessary. Government and COCOBOD took that decision just to save a sector which significantly contributes to our GDP,” he said.

He further argued that if authorities had relied solely on prevailing international market conditions, cocoa producer prices in Ghana would have experienced another reduction.

“If we are to consider what is prevailing on the international market, then of course the price would have gone down again,” he said.

He noted that producer prices there are adjusted whenever international prices decline, as is the case in neighbouring Côte d’Ivoire.

“Should you come to Côte d’Ivoire, where I find myself today, that’s what is happening, because they are having changes as and when the prices dip,” he noted.

Sam said Ghana deliberately chose to shield farmers from additional hardship by maintaining existing producer prices.

“We made a decision that, look, the farmer has already been hit, so we need to make sure that the prices remain unchanged, so we can end the season,” he explained.

He added that while government remains committed to protecting farmers, it is equally focused on ensuring the long-term sustainability of the cocoa sector.

“Inasmuch as we are protecting the farmer, we are also ensuring a sustainable sector, which will continue to play that major role in the lives of the farmers, as well as the economy,” he said.

ANAS/EB

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