The Government of Ghana has unveiled a substantial hike in the producer price of cocoa for the 2025/2026 crop year, raising it from US$3,100 to US$5,040 per metric tonne marking a 62.58% surge in dollar terms.
This decision was reached by the Producer Price Review Committee (PPRC), led by the Minister for Finance, Dr. Cassiel Ato Forson, ahead of the upcoming cocoa season, which officially begins on Thursday, August 7, 2025.
“It is instructive to note that the Government has by this decision increased the producer price significantly by 62.58% in US$ terms,” stated the Minister.
The revised price reflects 70% of the gross Free-On-Board (FOB) value of US$7,200 per tonne, fulfilling President John Mahama’s commitment to ensure cocoa farmers receive 70% of the FOB value.
In contrast, the previous NPP-led administration had pegged the FOB value at US$4,850 per tonne for the 2024/25 season, with the producer price set at US$3,100 representing 63.9% of the FOB value, despite more favorable global market conditions at the time.
The government clarified that the new FOB benchmark was derived from existing contracts for 100,000 tonnes sold at US$2,600 per tonne during the 2023/2024 season, combined with projections for the forthcoming season.
At an average exchange rate of GHS10.25 to US$1, the updated producer price translates to GHS51,660 per tonne, up from GHS49,600 equivalent to GHS3,228.75 per 64kg bag.
“This is coming on the back of a strong Ghana Cedi and declining inflation, reflecting the Government’s commitment to improving the livelihoods of our cocoa farmers,” the Minister added.
To shield farmers from income reductions due to the cedi’s appreciation, the government had sustained the cedi equivalent of US$3,100 per tonne at a rate of GHS16 to US$1 for several months, effectively providing a GHS1,114 subsidy per bag sold since the second quarter of 2025.
“This intervention by Government moved the farmer share of the FOB from 63.9% to over 99%,” the Minister stated.
Alongside the price revision, the PPRC has sanctioned updated margins and fees for key stakeholders in the cocoa supply chain including purchasing clerks, transporters, storage providers, and quality assurance teams.
COCOBOD, the sector regulator, has ensured the availability of jute sacks and logistics to facilitate a smooth commencement of the season.
The government also declared the revival of the Free Cocoa Fertiliser Programme, set to begin in the 2025/2026 season.
“I am pleased to announce that President Mahama’s Administration has reintroduced the free cocoa fertiliser programme as an additional support to the Ghanaian cocoa farmer,” the Minister said.
Farmers will be provided with complimentary inputs such as liquid and granular fertilisers, insecticides, spraying equipment, fungicides, and flower-inducing agents. Authorities urged farmers to use these resources strictly to enhance productivity and earnings.
As part of broader welfare efforts, the government has launched a Tertiary Education Scholarship Scheme for children of cocoa farmers. COCOBOD will initiate the program in the 2025/26 season, with full-scale implementation in the 2026/27 academic year.
Additionally, the government introduced the Ghana Cocoa Traceability System, starting this season. The system is designed to track cocoa from farm to port, in compliance with the European Union’s Deforestation Regulations, which take effect on December 31, 2025.
“This all-new system will ensure that Ghana is in full compliance with the due diligence requirements of the European Union Deforestation Regulations,” the Minister said.
The traceability framework will certify that Ghanaian cocoa is free from deforestation, child labor, and meets all EU standards.
The government is implementing sweeping reforms to realign COCOBOD with its primary mission of boosting cocoa output and supporting farmers.
“As part of the 2026 Budget, the Ghana Cocoa Board Act will be amended to make it illegal for COCOBOD to deviate or stray from its core mandate to protect the cocoa industry,” the Minister announced.
All ongoing cocoa road infrastructure projects will be handed over to the Ministry of Roads and Highways, and COCOBOD will cease involvement in quasi-fiscal operations.
“COCOBOD must focus on increasing cocoa yields, improving the cocoa value chain and the wellbeing of the cocoa farmer,” the statement said.
The government reiterated its trust in COCOBOD’s new leadership and pledged continued backing to restore cocoa as the backbone of Ghana’s economy.
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