Originally published September 14, 2024. After much wait, cocoa farmers in Ghana have officially earned a 2024-25 seasonal price increase to 48,000 cedi ($3,062) a tonne.

This 45% season-to-season increment follows an earlier announcement of an intention to improve the farm-gate rate. 

Arguably, the farmers will now earn 3,000 cedi ($191.40) for a 64-kg bag when dealing directly with traders. 

The new rate has coincided with the official beginning of the 2024-25 season on September 11. 

Spot and Futures Volatility Influence Decision

Other than the growers’ outcry, what prompted this raise is the 2023-24 non-stop volatility in international cocoa pricing.

One of these is the spot price scenario which Ghana’s government intends to utilize this season as opposed to contracts.

Notably, spot prices have more than tripled between March 2023 and September 2024. While in March 2023 the international spot offers had stood at $2,000 a tonne, by September 2024 they were at $7,960. In-between, they had peaked in February 2024 at $12,000 a tonne.

The second of these volatility reasons are the futures prices in London and New York, which have also tripled 2023 through 2024.  They upped from a March 2023 base of $2,200 a tonne to a September 13, 2024’s $7,073. 

Ghana is particularly vulnerable to pricing changes in the futures markets because it has traded on the platform since the 1970s. 

Indeed, on September 12, 2024 following Ghana’s 45% increment, the New York futures market recorded a 1 1/2 -week price high. 

Still, market analysts expect Ghana’s cocoa farmers to hoard their produce after the government sidelined their demand for a 65% price increase. 

Cocoa Farmers and Sustainable Production

Trade matters aside, the government has said it intends to realize annual production of over 650,000 tonnes by September 2025. 

A ministerial statement added that cocoa farmers will continually find the industry sustainable for the upcoming generations. 

Like Ghana’s, global production expectations are also high. A forecast by JSG Commodities puts the 2024-25 production at a 99,000-tonne surplus despite an astronomical 2023-24 deficit.

In short, though not mirroring the cocoa farmers’ demand 6,000 cedi per 64-kg bag, Ghana’s price raise marks a new beginning.  For more on the country’s 64-kg bag pricing history, check on the statistics below. 

Ghana 64-kg Bag Cocoa Prices Statistics 

Distinct from the per-tonne pricing, the 64-kg bag pricing allows farmers to sell small cocoa bean quantities to traders. Below is how the price has stood since 2021:

2021: the Cocoa Board (COCOBOD) increased the price to 660 cedi ($41.91), even as the per-tonne rate remained 10,560 cedi ($670.56).

2022: in October 2022, the 64-kg bag rate rose to 800 cedi ($50.80), whereas the per-tonne price gained by 21%.

2023: the price of a 64-kg bag spiked by 63.5% from 800 cedis ($50.80) to 1,308 cedi ($83.19). COCOBOD would again increase the rate halfway through the season in April 2024, to 2,070 cedi ($131.44).

2024: the 2024-25 season beginner on September 11, 2024 marked yet another strong increase to 3,000 cedi ($191.40) per 64 kg.