Ghana is paying cocoa farmers significantly more per 64-kilogramme bag than neighbouring Côte d’Ivoire under the current producer-price arrangements in the two countries.
Based on the stated exchange rate of GH¢1.00 to 49.49 CFA francs, Ghana’s producer price of GH¢2,587 per 64kg bag translates into a premium of approximately GH¢1,035.17 over Côte d’Ivoire’s equivalent price of about GH¢1,551.83 per bag.
The difference represents approximately 66.71 per cent of Côte d’Ivoire’s converted farmgate price, highlighting a significant disparity in the nominal prices being paid to cocoa farmers in the two major cocoa-producing countries.
Ghana’s cocoa producer price
Ghana’s approved producer price currently stands at GH¢2,587 for a 64kg bag of cocoa.
This translates into approximately GH¢40.42 per kilogramme, or GH¢41,392 per metric tonne.
The producer price forms part of Ghana’s cocoa pricing structure under the Ghana Cocoa Board (COCOBOD), which regulates the purchase and marketing of cocoa produced in the country.
Côte d’Ivoire’s farmgate price
In Côte d’Ivoire, the Conseil du Café-Cacao (CCC) has set the farmgate price at 1,200 CFA francs per kilogramme.
Using the same 64kg bag for comparison, the calculation is:
1,200 CFA × 64kg = 76,800 CFA francs per bag.
At the stated exchange rate of 49.49 CFA francs to GH¢1.00, the 76,800 CFA francs converts to approximately GH¢1,551.83.
The price gap
The difference between the two prices is therefore calculated as follows:
Ghana: GH¢2,587.00
Côte d’Ivoire: GH¢1,551.83
Difference: GH¢1,035.17 per 64kg bag
This means that, based purely on the stated producer prices and exchange rate, a cocoa farmer selling a 64kg bag at Ghana’s producer price receives the cedi equivalent of about GH¢1,035 more than the equivalent farmgate value in Côte d’Ivoire.
The calculation also places Ghana’s nominal producer price approximately 66.71 per cent above Côte d’Ivoire’s converted price.
Different cocoa pricing systems
The price disparity comes against the backdrop of changing conditions on the international cocoa market, which have affected the pricing decisions of the two leading cocoa-producing countries.
Ghana and Côte d’Ivoire both play major roles in the global cocoa industry, but their domestic cocoa marketing and pricing systems are structured differently.
Consequently, the difference in farmgate prices should be viewed as a comparison of the announced nominal producer prices, rather than as a complete measure of the overall economic position of cocoa farmers in the two countries.
Factors such as production costs, exchange-rate movements, input support, taxation, quality requirements and other producer benefits can influence the actual economic returns received by farmers.
Nevertheless, using the figures provided and the stated exchange rate, the comparison shows a substantial nominal difference in the farmgate value of a 64kg bag of cocoa, with Ghana’s producer price standing more than GH¢1,000 above the equivalent Côte d’Ivoire price.
Story by Freedom Etsey Lavoe
