The Agriculture Minister-designate, Eric Opoku, has indicated that the producer price of Cocoa will be determined by the world market price and exchange rate.
He made this comment when the former Minister of Food and Agriculture, Bryan Acheampong, during the Parliamentary Vetting Committee on Monday January 20, 2025 asked if he would revise his earlier suggestion of GH₵6,000 per metric ton to GH₵7,000.
Even though he did not categorically give a definite answer, he provided clarity by detailing the process of calculating the producer price, drawing comparisons with 2016 and current figures.
“In 2016, the FOB price of cocoa was $2,950 per ton, and the exchange rate was $1 to GH₵3.90. Multiplying the two gave a per-ton value of GH₵11,505. Dividing this by 16, the per-bag value was GH₵719,” he explained.
“Out of this, the Mahama administration gave cocoa farmers GH₵475, constituting 66%, while keeping GH₵244 for subsidising fertilizers and chemicals,” he added.
Mr. Opoku indicated this with the current situation, highlighting that the 2024/2025 cocoa season has seen significantly higher prices.
“At the time of the price announcement, the average world market price was $10,711 per ton and the exchange rate was $1 to GH₵15. Multiplying these, the per-ton value was GH₵160,665 which, when divided by 16 gives a per-bag value of GH₵10,042,” he said.
He added that a 70% share of the per-bag value would exceed GH₵7,000 but his earlier proposal of GH₵6,000 represented a conservative 60% considering the sector’s financial challenges.
“The GH₵6,000 recommendation was mindful of the fact that the government had plunged the cocoa sector into debt. Yet, the government paid farmers GH₵3,100 representing only 30%,” he noted.
School Farms
The Minister Designate also pledged to revolutionise Ghana’s agricultural sector. He revealed that every senior high school (SHS) in Ghana will own and operate a farm as part of efforts to promote agricultural self-sufficiency and reduce school feeding costs.
According to Mr. Opoku, the initiative will involve the recruitment of labourers to assist schools in preparing and managing these farms.
He expressed optimism that this approach would not only reduce the financial burden of school feeding programs, but also improve the quality and quantity of food served to students.
“We are going to encourage institutional farming. Every secondary school in this country will be made to own a farm,” he declared.
“This initiative will reduce the cost of school feeding and enhance both the qualitative and quantitative aspects of food served to students.”
In addition to school farms, Mr. Opoku intends to collaborate with religious organizations to expand agricultural activities.
He cited churches such as the Saviour Church, the Pentecost Church, Christo Asafo and the Seventh-day Adventist Church, which are already engaged in farming, as examples to emulate.
“We will encourage faith-based organizations to invest more in farming. Nature has blessed us with fertile land capable of producing food for local consumption and export,” he noted.
Agribusiness
He emphasised the need to transition from subsistence farming to agribusiness, which he defined as the profitable use of technology in agriculture. He highlighted the disconnect between agriculture and industry as a significant challenge, adding that the NDC’s vision is to align the two sectors to create jobs and stabilize the economy.
“Agribusiness focuses on profiting from agriculture using technology. When we integrate agriculture with industry, we can add value to our produce, increase exports, reduce imports, stabilize the exchange rate, and create jobs,” Mr. Opoku explained.
He also acknowledged the difficulty of changing farmers’ mindsets from subsistence farming to agribusiness. To address this, the minister-designate proposed a nationwide program similar to the Operation Feed Yourself campaign of the 1970s, encouraging every household to cultivate home gardens to meet their basic vegetable needs.
Mr. Opoku assured the committee of his commitment to sustainability, citing the importance of environmentally friendly policies. .
“When agricultural policies go wrong, food inflation rises, the food import bill increases, unemployment soars, and exchange rate vulnerabilities destabilise the entire business environment,” he said.
He outlined plans to implement green agricultural practices, promote sustainability, and reduce environmental degradation.
Inclusion of Women and Marginalised Groups
Addressing concerns about gender inclusivity, Mr. Opoku acknowledged the barriers women face in accessing land and credit. He pledged to tackle these systemic issues by establishing a Ghana Agricultural Insurance Scheme to subsidize insurance for farmers and facilitate credit access.
“According to a World Bank report, 44.1% of women in Ghana are employed in agriculture. By subsidising agricultural insurance and ensuring access to credit, we will empower women to expand their farming activities,” he stated.
Mr. Opoku also highlighted the establishment of land banks to make farmland available to smallholder farmers, including women and marginalised groups, as part of his strategy to create a more inclusive agricultural sector.
