What Happened:
Ghana is contemplating increasing the payment to cocoa farmers by up to double the current amount to discourage them from selling their beans to neighboring countries at higher prices.
Key Takeaways:
- Ghana is considering paying cocoa farmers up to twice as much to prevent them from selling to neighboring countries for higher prices.
- The increase in farmgate price is estimated to be between 50% and 100%.
- This action is in response to a global shortage of cocoa, causing several repercussions in the industry.
Analysis:
The proposal to increase the farmgate price for cocoa farmers reflects the measures being taken to combat the impact of the global shortage. This move aims to address the issue of farmers selling their beans to other countries due to better prices, thus helping Ghana retain its cocoa production and stabilize the market.
Do You Know?
- Farmgate price: The price of a commodity when it is sold by a farmer.
- Ghana Cocoa Board: The industry regulator responsible for overseeing the cocoa sector in Ghana.