The president of Ghana, Nana Addo Dankwa Akufo-Addo, has announced the new cocoa producer price for the 2020/21 season as GHS10,560 per tonne translating to GHS660 per bag.
The new price represents a 28% increase over the current 2019/20 producer price of GHS515 per bag and is set to kick in on the start of the new season beginning 1st October.
The prevailing cocoa producer price for the 2019/20 season is GHS515 per 64kg bag of beans, which was an 8.42 percent increase over the GHS475 per bag in the 2018/19 season.
Living Income Differential (LID)
Besides announcing the 2020/21 producer price, President Akufo-Addo also officially launch the historic Living Income Differential (LID) bonus payment on every bag of cocoa purchased.
Per the LID, cocoa farmers in Ghana and Ivory Coast will receive $25 or GHS145 ($1=GHS5.8 exchange rate) extra cash for every bag of cocoa they sell.
The amount is a direct payment of proceeds from a $400-per-tonne levy imposed on the terminal price of the commodity by Ghana and Ivory Coast in 2019, hoped to give cocoa farmers a decent income.
Per Ghana’s average output of 800,000 metric tonnes, an estimated total of $320 million in expected to be doled out directly to cocoa farmers this season.
$840 million will be available for payment to Ivorian cocoa farmers in LID bonus, going by the country’s production output of 2.1 million metric tonnes.
