Claim: The Member of Parliament for Efutu, Afenyo Markins, has claimed that Ghana pays more to cocoa farmers than the Ivory Coast.
According to data from the Cocoa Coffee Council in the Ivory Coast and the Ministry of Agriculture in Ghana, the producer price for cocoa per kilogram is $1.3 in Ghana and $1.3 in Ivory Coast respectively.
The Deputy Majority Leader in Parliament and the Member of Parliament for Efutu Constituency Afenyo Markins has claimed that Ghana pays more to cocoa farmers than the Ivory Coast.
The claim was made during Joy News’ Newsfile on Saturday, July 9, 2022, on the 1 hour:35minutes:45seconds to 1hour:35minutes-54 seconds of the show.
According to the Efutu Member of Parliament, “Ghana government is paying more to cocoa farmers in Ghana than in the Ivory Coast.”
The show which was streamed live on its YouTube channel has garnered over 15,000 views and received over 90 likes. The show was also aired on Joy FM 99.7. According to the media measurement report by Geopoll in 2018, Joy Fm is ranked 3rd as the most listened to radio station in Greater Accra with over 80,000 listeners.
DUBAWA decided to verify the claim.
Ghana and Ivory Coast are the top producers of cocoa in the world. According to Bloomberg, the two West African countries produce two-thirds of the world’s cocoa. However, which of the two countries pay more to their cocoa farmers? Is it Ghana or Ivory Coast? The only way to determine this is by using the producer price per cocoa for both countries.
In the Ivory Coast according to the Council for Regulation, Stabilization and Development of the Coffee-Cocoa sector supervised by the Ministry of Agriculture at the technical level and by the Ministry of Economy and Finance at the financial level, the farm gate price for cocoa per kilogram(kg) as at July 15, 2022, was 825 FCfa . This translates into $1.27 as at July 16, 2022. Rounding it up will be $1.3.
In Ghana, President Akufo Addo announced an increment of a new cocoa producer price by 28%. This means cocoa producers will be paid ¢10,560 per metric ton. This took effect from October 1, 2020. According to the Ministry of Agriculture, this is equivalent to ¢660 per 64kg bag. This announcement can be found in a news report by Citi Tube, the YouTube channel of an Accra-based media house, Citi FM/TV. Presidency.gov.gh the website for Ghana’s presidency, and the Ghana Cocoa Board (COCOBOD) also captured the news.
Moreover, the price as announced by the president in September 2020, was maintained as the producer price for cocoa per bag for the 2021/2022 cocoa season. This is captured on the website of the Ministry of Agriculture. A news report by myjoyonline.com also captured it.
Since ¢660 of ¢10,560 per metric ton is equivalent to 64kg in Ghana, DUBAWA decided to calculate how much cedis will make a kilogram (kg). In our calculation, we found out that the price for cocoa per kilogram (kg) will cost ¢10.31p. This translates into $1.27 as at July 16, 2022. Rounding it up will be $1.3.
The reason for the conversion into dollars is to better understand the prices for both countries since both countries spend different currencies. Ghana spends Ghana cedis while the Ivory Coast spends West Africa CFA franc.
With the evidence provided, we can conclude that the farm gate price for cocoa per kilogram (kg) in Ghana and Ivory Coast amounts to $1.3 and $1.3 in both countries. Thus, the claim that Ghana pays more to cocoa farmers in the Ivory Coast is false.