Audio By Carbonatix
Government has chosen to maintain cocoa producer prices despite declines in international markets, a decision aimed at protecting farmers' incomes and livelihoods, according to COCOBOD’s Head of Public Affairs, Jerome Sam.
Speaking on JoyNews’ PM Express on Monday, he said the decision stands in contrast to neighbouring Côte d’Ivoire, where producer prices are adjusted downward when global cocoa prices fall.
Mr Sam explained that Ghana’s pricing system has traditionally provided stability for farmers throughout the cocoa season.
“This is a conventional thing, and it has been a practice all this while. At the beginning of the season, an official announcement will come, and then when we also get to the light crop season, there will also be an announcement,” he said.
According to him, under Ghana’s system, prices announced at the start of the season often remain unchanged.
“Oftentimes, the price at the beginning remains unchanged because of the system adopted by Ghana,” he noted.
Mr Sam acknowledged that unusual circumstances over the past year forced authorities to intervene and review prices earlier than expected.
“It is quite unfortunate. Something happened this year. Starting from the beginning of last year, which goes into this year, something happened, so we had to have a change in the price somewhere in February,” he explained.
He said the decision generated significant public discussion but was necessary to safeguard a sector that plays a major role in Ghana’s economy.
“Government and COCOBOD took that decision just to save a sector which significantly contributes to our GDP,” he stated.
Mr Sam revealed that the most important consideration in the latest pricing decision was the welfare of cocoa farmers.
“Government took into consideration the income levels of the ordinary farmer. That is basically the first thing government took into consideration,” he said.
He argued that if Ghana had strictly followed movements in the international market, producer prices would have been reduced further.
“If we are to consider what is prevailing on the international market, then of course the price would have gone down again,” he said.
Drawing a comparison with Côte d’Ivoire, where he is currently based, Mr Sam said producer prices there are adjusted whenever international prices decline.
“Should you come to Côte d’Ivoire, where I find myself today, that’s what is happening, because they are having changes as and when the prices dip,” he explained.
Ghana, however, opted for a different path.
“We took a decision that the farmer has already been hit, so we need to make sure that the prices remain unchanged, so we can end the season,” he said.
Mr Sam stressed that government remains committed to balancing farmer protection with the long-term sustainability of the cocoa sector.
“Inasmuch as we are protecting the farmer, we are also ensuring a sustainable sector which will continue to play that major role in the lives of the farmers, as well as the economy,” he stated.
He maintained that the overriding objective was to shield farmers from further hardship.
“I can tell you that the government was largely very concerned about the income and livelihood of the ordinary cocoa farmer,” he added.
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