What are the general conditions for pricing in Ghana?
Our delicious beans come from Ghana - the country with the second highest export volume for cocoa worldwide. Only the Ivory Coast produces more. Together, the two countries account for nearly 70% of the world's cocoa bean exports. Last year alone, Ghana exported about 900,000 tons! And that cocoa is an important pillar of the Ghanaian economy is proven in the latest by the fact that it is the most important agricultural export and thus one of the country's main exports.
On average, according to studies by Südwind and the Royal Tropical Institute of the Netherlands (KIT), the approximately 800,000 hardworking cocoa farmers own between 2-4 hectares of land and their annual yield is about 350-400kg/hectare (which corresponds to approximately 5 ½ bags of 62.5kg cocoa)
Since cocoa farmers receive 480 cedis (86 euros) per bag, the annual income for one hectare is about 500 euros. In the following table, you can find out about their annual income.
You have to keep in mind that the figures given cannot give a generalized picture of the income because the cocoa growing regions have very different characteristics (soil quality, age and variety of the trees, etc.), and other income possibilities not added.
It is also interesting to know that there are discrepancies between hectares and actual areas, as cocoa farmers often do not have accurate measuring instruments. Of course, this can also have a considerable influence on the yield figures, as areas that are calculated to be too large can produce much higher yields than assumed when calculated more accurately.
Table 1: Income in cocoa cultivation
|Hectares on which cocoa trees are planted||Income from cocoa cultivation/year||Income from cocoa cultivation/day||Number of family members||Daily income from cocoa cultivation per family member|
|2||960-1100 Euro||2,63 - 3,01 Euro||5,9||0,48 Euro|
|3||1440-1650 Euro||3,95 - 4,52 Euro||5,9||0,69 Euro|
|4||1920-2200 Euro||5,26 - 6,03 Euro||5,9||0.96 Euro|
Source: Calculation based on data from Südwind 2017 &, KIT NL.
The cocoa farmers of our partner cooperative Yayra Glover own on average between 2-4 hectares of land on which they cultivate cocoa. Per hectare, they produce around 10 bags (62.5kg each). This significantly higher yield is due to Yayra Glover's expertise in organic farming.
The cocoa farmers receive a lot of training to achieve a high yield through organic best practices. In addition, the cocoa farmers receive 525 cedis per bag through the premium we pay instead of the 480 cedis.
We are also working with Yayra Glover on alternative income opportunities. For example, the cocoa farmers grow plantain. We are also working on growing coconut palms. This provides additional income, increases the cocoa harvest and promotes biodiversity. As you can see, the income of Ghanaian cocoa farmers is super low.
Table 2: Income of the cocoa farmers of our partner cooperative
Source: Calculation based on data from our partner cooperative Yayra Glover.
As you can see, the income of Ghanaian cocoa farmers* is super low. The falling world market price of cocoa makes the situation even more devastating. Do you want to navigate the complex web of economic and national realities and become a cocoa expert? Then be sure to read more blog articles about the world cocoa market and the cocoa market in Ghana!