The Minister for Food and Agriculture, Eric Opoku, says cocoa farmers are in a stronger economic position under the current pricing structure, even after the recent cut in the producer price of cocoa.
In an interview on Ekosii Sen on Asempa FM, the Minister maintained that farmers’ real earnings have improved compared to the period under the New Patriotic Party (NPP).
He illustrated this by comparing purchasing power across periods. According to him, in 2024, when cocoa sold at GH₵3,100 per bag and cement cost GH₵120 per bag, a farmer could acquire about 26 bags of cement from the sale of one bag of cocoa.
He noted that although the current cocoa price stands at GH₵2,587, the price of cement has declined to approximately GH₵80 per bag—largely due to exchange rate stability—allowing a farmer to now purchase roughly 32 bags of cement with the proceeds from one bag of cocoa.
“If cocoa prices increase, we will all benefit. In 2024, one bag of cement was priced at GH₵120, while cocoa was sold for GH₵3,100. During the NPP era, a farmer could use one bag of cocoa to purchase 26 bags of cement. If the farmer’s real income increases, then the farmer is better off.
“Currently, the price of cocoa has decreased to GH₵2,587, but a farmer can purchase 32 bags of cement, primarily due to exchange rate improvements. As a result, the price of cement has dropped to GH₵80 per bag,” he said.
Mr. Opoku also pointed to falling fuel prices as another factor strengthening farmers’ purchasing power. He explained that under the previous administration, one bag of cocoa could buy about 34 gallons of petrol, whereas it can now purchase around 53 gallons.
“Thus, a rational cocoa farmer would weigh the comparison carefully. Even though prices have fallen, the farmer’s real income has appreciated, which is the most crucial factor. Additionally, fuel prices influence every aspect of production, including cocoa farming, as farmers depend on fuel for irrigation and transportation,” he stated.
He emphasised that while the nominal price of cocoa has declined, the more important measure is farmers’ real income and purchasing power, which he believes have improved significantly.
“During the NPP era, one bag of cocoa could buy about 34 gallons of petrol. However, due to the reduction in fuel prices linked to exchange rate stability, a farmer can now purchase about 53 gallons of petrol with one bag of cocoa.
“Comparatively, this situation is better for farmers. We also plan to present a bill to Parliament to provide for automatic price adjustments that will benefit the farmer,” he added.
