The Government of Ghana has announced a significant boost in the producer price of cocoa for the 2025/2026 season, raising it from US$3,100 to US$5,040 per tonne — a 62.58% increase in dollar terms.
The new pricing decision was approved by the Producer Price Review Committee (PPRC), chaired by Finance Minister Dr. Cassiel Ato Forson, ahead of the season opening on Thursday, August 7, 2025.
“This marks a substantial 62.58% rise in producer price in US dollar terms,” the Minister stated.
This new price reflects 70% of the gross Free-On-Board (FOB) value of US$7,200 per tonne, fulfilling President John Mahama’s commitment to pay cocoa farmers 70% of the FOB value.
By contrast, the previous administration under the NPP had set the FOB price at US$4,850 per tonne, paying farmers US$3,100 — just 63.9% of the FOB — despite stronger global market conditions at the time.
The current gross FOB value is based on a combination of past contracts, including 100,000 tonnes sold at US$2,600 per tonne in the 2023/2024 season, and future market forecasts.
Cedi Equivalent and Currency Support
At the current exchange rate of GHS10.25 to US$1, the new cocoa price equals GHS51,660 per tonne, up from GHS49,600. This translates to GHS3,228.75 per 64kg bag.
“The increase comes amid a strengthening Ghana Cedi and falling inflation, underscoring government’s commitment to improving farmers’ livelihoods,” Dr. Forson added.
To shield farmers from losses due to the Cedi’s appreciation, the government had previously maintained the local equivalent of US$3,100 per tonne at GHS16 to US$1, providing a GHS1,114 per bag subsidy since Q2 2025.
“This policy effectively increased the farmer’s share of the FOB from 63.9% to over 99%,” the Minister explained.
Support for Cocoa Value Chain
Alongside the price increase, the PPRC has revised margins and fees for key industry players — including licensed buyers, transporters, warehouse operators, and quality control services.
COCOBOD, the sector regulator, has assured farmers of available jute sacks and logistics to ensure a smooth start to the new season.
Free Fertiliser Programme Returns
The government also announced the reintroduction of the Free Cocoa Fertiliser Programme beginning this season.
“President Mahama’s administration is bringing back the free fertiliser programme as additional support to cocoa farmers,” said Dr. Forson.
The programme will distribute free fertilisers (liquid and granular), insecticides, spraying machines, fungicides, and flower inducers. Farmers are encouraged to use these solely to boost yields and income.
Scholarships and Traceability Initiatives
A new Tertiary Education Scholarship Scheme for children of cocoa farmers will be launched in the 2025/2026 season, with full rollout expected in 2026/2027.
In addition, Ghana will implement a Cocoa Traceability System this season, ensuring that cocoa can be traced from farm to port. This move aligns with the European Union’s Deforestation Regulations, effective December 31, 2025.
“The system will ensure Ghana’s cocoa meets EU standards for deforestation-free, child labour-free production,” the Minister noted.
Major Reforms at COCOBOD
The government is also rolling out key reforms at COCOBOD to sharpen its focus on supporting farmers and increasing yields.
As part of the 2026 Budget, the Ghana Cocoa Board Act will be amended to legally prevent COCOBOD from deviating from its core mandate.
All cocoa roads projects will be transferred to the Ministry of Roads and Highways, and COCOBOD will cease quasi-fiscal activities.
“COCOBOD must concentrate on improving yields, strengthening the cocoa value chain, and enhancing farmer welfare,” the Minister emphasized.
The government expressed full confidence in the new leadership at COCOBOD and reiterated its commitment to restoring cocoa as the backbone of Ghana’s economy.
