Claim: The 2024 presidential candidate of Ghana’s opposition National Democratic Congress (NDC), John Dramani Mahama, claims the cocoa producer price in the country did not increase between 2017 and 2020.
Verdict: This is false. Checks by DUBAWA showed that President Nana Akufo-Addo maintained the 2016/17 cocoa producer price of GHS7,600 per tonne in the first two cocoa crop seasons in his first term in office, specifically the 2017/18 and 2018/19 crop years. However, COCOBOD data has revealed that he increased the cocoa producer price in the last two crop seasons during his first term, namely the 2019/20 and 2020/21 crop years.
Full Text
The 2024 Presidential candidate of Ghana’s opposition National Democratic Congress (NDC), John Dramani Mahama, has accused the government of President Nana Akufo-Addo of neglecting the cocoa sector, which he said has “brought in precious foreign exchange since independence.”
Speaking to the Ghana Agricultural Workers Union (GAWU) on Feb. 8, 2024, the ex-Ghanaian leader said the current regime refused to increase the cocoa producer price for farmers during its first term between 2017 and 2020.
“It has always been the policy to increase the share of farmers to make cocoa farming lucrative both for those currently farming and for those who wish to establish cocoa farm [and] so under the previous administration, including mine, every year we made it a point to increase the producer price so that it keeps the industry profitable for the farmers to continue to tend to their cocoa farms.
Part of the reason for the decline [in the cocoa sector] we suffer currently is that in the first four years of the Akufo-Addo administration, they refused to add even GHS1 to the producer price. So, for four years, there was no increase in the producer price to the extent that the farmers’ share dwindled precipitously in relation to what the world market price was,” Mr Mahama said.
Watch the video of the NDC flagbearer’s engagement with GAWU members posted on Mr Mahama’s Facebook page, starting from minutes 21:22 to 24:56.
Data available on the social media platform shows the video has received 646 likes, 127 comments, and 118 shares, while the video has been watched 1,835 times.
In a bid to promote truth in public discourse, DUBAWA decided to ascertain if the claims made by the ex-president were true.
Verification
According to Food Circle, the cocoa producer price refers to the amount paid to cocoa farmers for their cocoa beans, which represents the value received by the farmers at the point of production.
The cocoa producer price in Ghana is determined by the Producer Price Review Committee (PPRC) created during the 1983/84 cocoa crop season while the Minister of Finance and Economic Planning chairs the Committee. The objective of the PPRC is to review and adjust producer prices regularly.
DUBAWA’s checks showed that although the government of President Nana Akufo-Addo maintained the 2016/17 cocoa producer price in two crop seasons in its first term in office, specifically 2017/18 and 2018/19, it, however, increased it in 2019/20 and 2020/21 crop years. This position is supported by data subsequently released to DUBAWA by COCOBOD.
The cocoa producer price for the 2016/17 cocoa crop year was GHS7,600 per tonne, translating into GHS475 per bag of 64 kilogrammes (Kg) gross weight. The 2016/17 cocoa producer price was determined by the erstwhile regime of Mr John Mahama before handing over to Mr Nana Akufo-Addo on Jan. 7, 2017.
Several media reports in the West African country support that cocoa producer prices did not increase in the 2017/18 and 2018/19 under President Nana Akufo-Addo.
Ghana’s State-owned newspaper, Daily Graphic, reported on Aug. 10, 2017, that:
“The government is to maintain the producer price of cocoa at GHS475 per bag of 61.5 kilogrammes for the 2017/2018 cocoa season, despite the fall in the commodity price on the international market.”
However, the government of President Nana Akufo-Addo increased the cocoa producer price during the 2019/20 and 2020/21 crop seasons by 8.42% and 28%, respectively, during its first term.
It is evident from the available data that the cocoa producer price in Ghana had increased twice in the first term of President Nana Akufo-Addo, specifically during the 2019/20 and 2020/21 crop seasons. This brings to GHS640 the sum of money added to the cocoa producer price between 2017 and 2020.
Conclusion:
Therefore, It is inaccurate for the ex-Ghanaian leader and the 2024 NDC flagbearer, Mr Mahama, to claim that the government of President Nana Akufo-Addo did not increase the cocoa producer price in its first term between 2017 and 2020.
