Commodities: Ghana Considers Lowering Cocoa Prices to Help Local Processors

cocoa-market-potential

According to a recent interview from the CEO of the commodities regulator, Mr Hackman-Owusu, “We are going to do a cost-benefit analysis and consider some discount so the processors can buy the main crop to ensure that they process at full capacity, which will help create more jobs for the youth,” he said.

  • Country plans to raise grinding to 50% of national harvest
  • Local grinders producing below capacity due to scarce beans
  • Considering reducing prices for the cocoa beans it sells to local grinders

    Ghana is considering reducing prices for the cocoa beans it sells to local grinders in a bid to boost processing volumes and create more employment.

    The world’s second-largest producer of the chocolate ingredient plans to raise local processing to 50 percent of national bean output from 20 percent currently, according to the Ghana Cocoa Board, the industry regulator.
    The most important business stories of the day.

    Ghana has about 12 cocoa-processing companies with an installed capacity that’s estimated to total about 400,000 metric tons, or about half the country’s average harvest over the last three years. Processors in the West African nation, including Barry Callebaut AG and Cargill Inc., have operated below capacity because of the unavailability of the so-called light-crop beans. Some companies have even had shutdowns in the last two years as a result.

    The light crop beans are smaller and sell at a 20 percent discount that make them competitive globally but that is insufficient and the main crop sells at a premium.

    “We are going to do a cost-benefit analysis and consider some discount so the processors can buy the main crop to ensure that they process at full capacity, which will help create more jobs for the youth,” he said.

 

Source:  Bloomberg

 

https://www.bloomberg.com/news/articles/2017-05-03/ghana-considers-lowering-cocoa-prices-to-help-local-processors

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About Anang Tawiah

About the author :: Anang Tawiah is a New York City based Management Consultant specializing in Investment Risk and Technology Strategy. He continues to guide many Blue chip companies and Governments as a Business and Technology Consultant. Please direct all follow up questions, concerns, request for speaking engagements and presentations regarding my articles and research to my Facebook Page listed below. You can read more of his analysis or reach him for further professional consultations and or guidance at: // Email: anang@labaddi.com // Follow me on Wordpress: www.anangtawiah.com // Follow me on Facebook: www.facebook.com/AnangTawiah

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