Licensed Buyers demand Producer Price Review Committee for cocoa pricing

Licensed Cocoa Buyers Association of Ghana (LICOBAG) has urged players in the cocoa industry to let the Producer Price Review Committee (PPRC) lead discussions on the pricing of cocoa for 2022/23 cocoa season.

Mr Victus Dzareh Dzah, the Executive Secretary of the Association, in a statement, said the Committee, which had the mandate to deal with matters relating to the pricing of the crop should be allowed to function despite the “euphoria surrounding the pricing of cocoa for this season.”

“Much as we agree that the cost of doing any kind of business at this time is extremely high, we believe that a scientific approach must be taken in the price review exercise,” he said.

“When the farmer produces cocoa, it must be bought, graded, and sealed, evacuated and shipped, before value is added to it lest it is valueless. The size of the ‘cake’ which is the world market price (f.o.b. price) drives the sharing mechanism and fairness is the hallmark of this exercise lest the industry collapses.

“We all need to take a sober look at what is happening on the market to guide us. This means that we must all be guided by the facts from the figures for a fair distribution of the ‘cake’. We anticipate positive input into this debate to achieve healthy stakeholder relationships,” the statement said.