REVIEW OF THE PRODUCER PRICE OF COCOA FOR THE 2009/2010 COCOA SEASON ON WEDNESDAY 14TH OCTOBER 2009

The Government has approved a new Producer Price of Cocoa for the 2009/2010 Season under the recommendation of the PPRC which met today under the Chairmanship of Dr. Kwabena Duffuor, Minister of Finance and Economic Planning.

PRODUCER PRICE

The new producer price is GH¢2,208.00 per tonne which is 71.06 percent of the net FOB price. This figure translates to GH¢138.00 per bag of 64 kilogram gross weight. The new price is 35.29 percent above the previous price of GH¢1,632 per tonne. The new producer price takes effect from today 14th October, 2009.

OTHER RATE AND FEES

Government also approved the recommendation of the PPRC to increase other rates and fees for the other stakeholders in the industry. These include the Buyers’ margin, Hauliers rate, CMC’s internal marketing costs as well as fees for disinfestations, grading and sealing as well as scale inspection.

Given the favourable price outlook on the world market, Government has directed the Ghana Cocoa Board (COCOBOD) to work out and pay bonuses to farmers on the 2008/2009 main cocoa crop. This must be done within the week for the approval of the Minister of Finance and Economic Planning.

COCOBOD must ensure that the payment of the Bonus is effected before December, 2009.

Government has established a Social Security Fund for Cocoa Farmers from the 2009/2010 season. To this end GH¢ 21.43 per tonne has been set aside to start the fund. This will amount to GH¢15 million.

Government also directed COCOBOD to complete work on the revision of the Cocoa Sector Development Strategy Document which Government approved in April 1999 and organize a stakeholder’s workshop to validate the result by the end of January 2010. The revised strategy document will dovetail into Government’s medium term plan being prepared by the National Development Planning Commission.