Ghanaian Government boosts support for cocoa farmers; should the Philippines follow this step?

Ghana is a republican country in West Africa known as "Gateway to Africa" because of its capacity to handle seaport trading industry among other nation in Africa. They are the second producer of cacao beans in the world as the nation primary agricultural export product together with palm oil, cassava, rice and corn.

List of Contents
I. Ghana's Cocoa contribution to country's GDP.
II. Ghana Government boosts support for Cocoa Farmers.
III. The Importance of Government Support for the Agriculture Sector.

Ghana's Cocoa contribution to country's GDP

In 2022, according to statista.com, cocoa in Ghana contributed 454 million U.S. dollars to the country's Gross Domestic Product, as forecasted. By 2025, the agricultural product is expected to have the highest contribution to the country's GDP, with over 533 million U.S. dollars observed.

Ghana is forecasted to have 750 MT of cocoa produced in the 2023 season, which represents an 8% increase in cocoa bean production from the 2022 season.

Given the significant role cocoa beans play in boosting Ghana's Gross Domestic Product, the government continuously encourages and promotes resilience actions to support cocoa farmers. Simultaneously, farmers contribute to the country's economy.

Ghana Government boosts support for Cocoa Farmers

In an article published by the Ministry of Food and Agriculture of the Republic of Ghana, President Nana Addo Dankwa Akufo-Addo announced a 63.6% increase in the price of cocoa, raising it from GH¢800.00 per bag (69.71 USD) to GH¢1,308.99 per bag (113.54 USD). Farmers will now receive GH¢1,308.99 for every 64-kilogram bag of cocoa beans sold to Licensed Buying Companies, as stated. This substantial compensation increase has the power to enhance agricultural sector production, especially among cocoa farmers.

As Alhaji Bukari, President of the Ghana Cocoa Coffee and Sheanuts Farmers Association, pointed out, the rise in commodity prices serves as motivation to increase their production.

The Importance of Government Support for the Agriculture Sector

In their perspective, the power of government support in the agricultural sector is significantly important in any country, especially in agricultural countries like the Philippines. Increasing the farmgate price or the market price of commodities is one proven technique to uplift the agriculture industry in the country. However, if commodities lack the proper marketplace and targeted institutions for catering to huge production, they would still be useless. Farmers need government support from cultivation to the marketing of commodities.  To simplify the analysis, if farmers don't see prospective buyers for their cash crops, they would never attempt to plant those specific crops. If the government seeks possible export partners for commodities, they should also offer a good and reasonable farmgate price to encourage farmers to cultivate said commodities and utilize their farmland. Unfortunately, corrupt governments often do not prioritize the well-being of their people.

In conclusion, the Philippines can also apply this kind of support to its farmers to focus on increasing their produce and addressing commodity shortages, such as the rice shortage in the country.