The Producer Price Review Committee (PPRC) on cocoa met today under my Chairmanship and agreed on a new Producer Price of cocoa for the 2012/2013 season which opens today, Friday, 12th October 2012.
2. PRODUCER PRICE
The PPRC reviewed upwards the producer price of cocoa from GH¢3,280.00 per tonne to GH¢3,392 per tonne. This amount translates to GH¢212 per bag of 64kg and represents 78.42 percent of the net FOB. The new price takes effect from today 12th October, 2012.
Faced with declining world cocoa prices from US$3,000 in 2011/12 to US$2,300 in 2012/13, Government remains committed to ensuring that the welfare of cocoa farmers is continuously enhanced. In fulfillment of this commitment, Government has decided to reduce its share of the 2012/13 cocoa export duty, in order to raise the producer price paid to our hardworking cocoa farmers. This decision was taken to increase the earnings of farmers so as to enhance their welfare.
It will be recalled that in 2007/2008 the producer price of cocoa was GH¢75 per bag of 64kg. This was increased to GH¢102 per bag in 2008/09 before the NPP Government left office. Thus when the NDC came to office in 2009 cocoa price was GH¢102 per bag of 64kg. In 2010/11 the producer price was increased from GH¢102 per bag of 64kg to GH¢200 per bag of 64kg. By 2011/12 the price per bag had risen to GH¢205: that is more than a 100% increase in three years. Today, notwithstanding the low international cocoa price, the NDC Government has again raised the producer price to GH¢212 per bag of 64kg.
During the 2008/09 crop year, Government set up a Stabilization Fund with annual contributions from the FOB price as a risk mitigating mechanism against a fall in international cocoa prices. The primary objective of the Fund was to apply it to sustain the earnings of cocoa farmers in challenging times like we are witnessing during this 2012/13 cocoa season. Given the difficulty of the situation confronting us and in line with the underlying objective of the Stabilization Fund, the accumulated fund has been applied accordingly.
3. OTHER RATES AND FEES
The PPRC also approved other rates and fees for all other stakeholders in the industry. These include the Buyers' margin, Hauliers' rate, warehousing and internal marketing costs as well as fees for disinfestation, grading and sealing. The margins, rates and charges were maintained at last year's levels as a demonstration of the commitment of other key stakeholders towards a sustainable cocoa industry.
4. GOVERNMENT SUPPORT AND COMMITMENT
I would like to emphasize that Government will continue to support other interventions including the pests and diseases control (Mass Spraying) for farmers, and Hi-Tech programmes to ensure that the envious record of the Ghanaian cocoa
industry is sustained.
Government also commits itself to continuing with the rehabilitation of cocoa and coffee farms, the provision of 20 million free improved seedlings every year to farmers for the next five years as well as scholarship awards for the children of cocoa farmers in second cycle institutions.
HON. DR. KWABENA DUFFUOR
MINISTER FOR FINANCE AND ECONOMIC PLANNING