The Minister for Food and Agriculture, Eric Opoku, has announced his intention to embark on a nationwide tour of cocoa-growing communities across Ghana. The primary objective of this tour is to engage directly with farmers regarding the recently adjusted producer price of cocoa and to address various challenges currently confronting the vital cocoa sector.

During an interview on Asempa FM's 'Ekosii Sen' program, Mr. Opoku emphasized that matters pertaining to cocoa are regularly deliberated at the Cabinet level, assuring farmers that the government is acutely aware of their concerns.

Mr. Opoku acknowledged the recent decline in global cocoa prices but affirmed that the government is actively implementing measures to manage the situation effectively and safeguard the interests of cocoa farmers.

He expressed confidence that a thorough explanation of the circumstances would lead to a better appreciation of the government's position by the farming community.

Furthermore, the Minister revealed the government's plan to present a bill to the Parliament of Ghana. This legislative initiative aims to establish a mechanism for automatic price adjustments that would directly benefit cocoa farmers, ensuring their continuous protection and fair compensation.

Highlighting the government's commitment, Mr. Opoku stated, “Whenever a cocoa issue arises, I am involved in the discussions at Cabinet. We urge all farmers to recognise that we are all part of this situation. I plan to tour cocoa-growing areas and, if permitted, I believe I can complete the exercise within a month.”

He added, “Once I explain the situation to them, I am confident they will understand. Additionally, we intend to present a bill to Parliament to provide for automatic adjustments that will benefit the farmers.”

Despite the recent reduction in the nominal producer price of cocoa, Minister Opoku asserted that cocoa farmers are, in fact, better off under the current pricing regime compared to previous administrations.

He argued that the real income and purchasing power of farmers have significantly improved. To illustrate this, he presented a comparative analysis using the prices of essential commodities like cement and fuel.

Mr. Opoku explained that in 2024, when a bag of cocoa sold for GH₵3,100 and a bag of cement cost GH₵120, a farmer could purchase approximately 26 bags of cement with the proceeds from one bag of cocoa. In contrast, under the current scenario, with cocoa priced at GH₵2,587 and cement prices having dropped to around GH₵80 per bag (attributed largely to exchange rate stability), a farmer can now acquire roughly 32 bags of cement with the earnings from a single bag of cocoa.

He elaborated, “In 2024, one bag of cement was priced at GH₵120, while cocoa was sold for GH₵3,100. During the NPP era, a farmer could use one bag of cocoa to purchase 26 bags of cement. If the farmer’s real income increases, then the farmer is better off.”

He continued, “Currently, the price of cocoa has decreased to GH₵2,587, but a farmer can purchase 32 bags of cement, primarily due to exchange rate improvements. As a result, the price of cement has dropped to GH₵80 per bag.”

Beyond cement, the Minister also pointed to a decline in fuel prices as a factor contributing to increased farmer purchasing power. He noted that under the previous administration, the proceeds from one bag of cocoa could buy about 34 gallons of petrol.

Currently, due to reductions in fuel prices linked to exchange rate stability, a farmer can purchase approximately 53 gallons of petrol with the same amount of cocoa.

“Thus, a rational cocoa farmer would weigh the comparison carefully. Even though prices have fallen, the farmer’s real income has appreciated, which is the most crucial factor,” Mr. Opoku stressed.

He reiterated that fuel prices significantly impact all aspects of agricultural production, including cocoa farming, as farmers rely on fuel for irrigation and transportation.

The Minister concluded by emphasizing that while the nominal price of cocoa has seen a reduction, the most critical aspect for farmers is their real income and purchasing power, which he firmly believes has considerably improved.

He also restated the government's commitment to present a bill to Parliament to provide for automatic price adjustments that will ultimately benefit the cocoa farmers.