BONANZA FOR COCOA FARMERS (SEPT 29, 2010)

COCOA farmers have expressed joy at the decision by the government to increase the producer price of cocoa for the 2010/2011, crop season.
The 33.3 per cent upward adjustment, which takes effect from Friday, October 1, 2010, will help to check the smuggling of cocoa to neighbouring countries.
The government has decided to raise the producer price of cocoa from Gh¢2,400 per tonne or GH¢150 per 64 kilogrammes of cocoa to GH¢3,200 per tonne or GH¢200 per bag, which farmers have described as a healthy development.
It is common knowledge that because of the better prices of the produce in neighbouring countries, certain unpatriotic persons have been smuggling cocoa across the borders.
There has also been some misunderstanding among farmers as to whether or not the government was paying more than 70 per cent of the international price (Free on Board or FoB) to the cocoa producers but with the announcement by the Finance Minister, Dr Kwabena Duffour, that the new producer price represented 75.15 per cent of FoB, this debate should be laid to rest.
The DAILY GRAPHIC is particularly encouraged by the government’s continued support for the cocoa sector in order to maximise returns and maintain the sector as the major foreign exchange earner for the country.
When the Ghana Cocoa Board (COCOBOD) raised funds from international banks to the tune of $1.5 billion to enable it to purchase cocoa for this year’s crop season, the signal was that as a country, we are still determined to increase yields from cocoa.
The regular review of the producer price of cocoa should motivate our farmers to keep good faith with the government by working hard to hit the one billion tonnes by the targeted date.
Now that the government has addressed the critical issue of producer price of cocoa to stem the smuggling of the produce, it behoves the COCOBOD to speed up the processes of introducing a pension and housing scheme for the cocoa farmers.
There will be no future for cocoa farmers who are unable to put aside savings for a rainy day and the plight of such cocoa farmers does not serve as enough motivation for the youth to venture into cocoa production.
We have been told that a group of experts has been put in place to deal with a pension scheme for cocoa farmers, but the DAILY GRAPHIC thinks the action has been a bit too slow and work on the scheme needs to be speeded up.
In spite of the oil find, cocoa will continue to be the mainstay of the economy for years to come and it is for this reason that all stakeholders should join hands to maintain the cocoa industry as the number one foreign exchange earner for the country.
We are always reminded to avoid the oil curse or the ‘Dutch disease’ now that we are on the verge of joining the oil producers because others who abandoned agriculture and industries to chase oil money are paying dearly for that decision.
The DAILY GRAPHIC thinks the people of Ghana can avoid that path if they learn from the experiences of others so that we continue to invest in all the sectors of the economy to supplement incomes from oil production.
It is our hope that the farmers will reciprocate the government’s gesture of reviewing the price of cocoa upwards by producing more and exposing those who smuggle our cocoa across the borders.
The DAILY GRAPHIC believes the payment of good prices should also encourage the farmers to adopt good crop husbandry practices in order to increase yields.
Inputs such as fertilisers and other chemicals have been subsidised and the mass spraying of cocoa farms should serve as additional incentive for increased production of cocoa.
Cocoa is our lifeblood, and it is hoped the farmers will work hard to maintain it as such for many years to come.