In a significant policy shift aimed at improving the livelihoods of cocoa farmers, the government has announced an increase in their earnings from the previously proposed 60% to 70% of the world market price.
The announcement was made by the Minister of Food and Agriculture, Hon. Eric Opoku, who highlighted the government’s commitment to ensuring fair compensation for farmers who are the backbone of Ghana’s cocoa industry.
Cocoa remains a crucial pillar of Ghana’s economy, contributing approximately 20% of the country’s total export revenue.
However, fluctuating global prices, climate change, smuggling, and the prevalence of ageing farms have negatively impacted production in recent years. By increasing farmers’ earnings, the government seeks to address these challenges and secure the long-term sustainability of the sector.
The decision to raise cocoa farmers’ earnings aims to achieve several key objectives:
- Encouraging Farmers: Providing higher returns will incentivize farmers to remain in cocoa cultivation instead of shifting to other crops.
- Boosting Production: Increased earnings are expected to enhance productivity and ensure Ghana maintains a strong presence in the global cocoa market.
- Strengthening Market Position: Ghana, currently the second-largest cocoa producer after Côte d’Ivoire, seeks to solidify its standing as a leading player in the industry.
Hon. Eric Opoku, in a Facebook post on Sunday, February 26, stated that the increment was designed to motivate farmers and acknowledge their critical role in Ghana’s economic growth.
“This move is to ensure that our hard-working cocoa farmers receive the deserved value for their labour. Their dedication sustains our economy, and it is only fair that they reap the rewards of their toil,” he noted.
The increase in cocoa farmers’ earnings aligns with the government’s broader vision of improving agricultural sustainability, rural livelihoods, and food security. It is expected to bring about the following benefits:
- Enhanced Financial Stability: Farmers will experience improved income security, leading to better living conditions and community development.
- Reduction in Smuggling: The policy is anticipated to curb the illegal smuggling of cocoa to neighbouring countries, where farmers often seek higher prices.
- Stronger Cocoa Industry: A more resilient cocoa sector will ensure continued economic growth and job creation for thousands of Ghanaians dependent on the industry.
The government’s decision underscores its commitment to supporting farmers and reinforcing Ghana’s position as a global cocoa powerhouse. With this increase, cocoa farmers can look forward to a more prosperous and stable future in the industry.
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