According to the group, its working assumption of the Producer Price Review Committee (PPRC) of COCOBOD, which aims at ensuring that farm gate price is pegged at a minimum of 70 percent of the net Free on Board (FoB) price shows that farmers should be receiving a minimum of ¢838 which translates into $98 dollar per bag of the 62.5 kilogram of cocoa beans.
This figure, it said in a statement was arrived at using the lowest projected values available, including the Living Income Differential (LID) of $400 per tonne as agreed between cocoa producers and buyers.
“We expect the net FoB for 2022/2023 cocoa season to be not less than 80% of the prevailing producer price, which should be around $1,682. By applying the PPRC working assumption of minimum 70% of net FoB going to farmers, which translates into $1,178 per tonne for the farmer,” the group said.
The GCCP argued that the figure is less the $400 LID that was instituted and charged by COCOBOD on all futures for 2020/2021 cocoa season.
“Assuming COCOBOD gives all the $400 LID to the farmer that brings the farm gate price to $1,578 per tonne for the 2022/2023 cocoa season”.
“Using the year on year Bank of Ghana exchange rate of $1 to ¢8.5, cocoa farmers are expected to receive not less than ¢13,413 per tonne of cocoa beans which should translate into minimum ¢838 per bag of cocoa beans.
Describing the calculations as conservative estimates, the GCCP said it expects COCOBOD to meet the demands with ease.
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