The Ghanaian government has announced a significant increase in the producer price of cocoa for the 2025/2026 season, boosting it from $3,100 to $5,040 per tonne, representing a 62.58% hike in dollar terms. This decision, made by the Producer Price Review Committee (PPRC) led by Finance Minister Dr. Cassiel Ato Forson, aims to improve the livelihoods of cocoa farmers.
“It is instructive to note that the Government has by this decision increased the producer price significantly by 62.58% in US$ terms,” the Minister stated. The new price accounts for 70% of the gross Free-On-Board (FOB) value of $7,200 per tonne, aligning with President John Mahama’s promise to pay farmers 70% of the FOB price.
In comparison to the previous administration, which set the FOB value at $4,850 per tonne and the producer price at $3,100 (63.9% of FOB), the current government’s decision marks a substantial increase. The new FOB value was determined using outstanding contracts for 100,000 tonnes sold at $2,600 per tonne in the 2023/2024 crop season and forecasts for the upcoming season.
With an average exchange rate of GHS10.25 to $1, the new 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 loss due to the cedi’s strength, the government maintained the cedi equivalent of $3,100 per tonne at GHS16 to $1 for several months, amounting to a GHS1,114 subsidy per bag sold since Q2 2025. “This intervention by Government moved the farmer share of the FOB from 63.9% to over 99%,” the Minister stated.
The government has also reintroduced the Free Cocoa Fertiliser Programme, providing farmers with free fertilisers, insecticides, spraying machines, fungicides, and flower inducers to boost yields and income. “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.
A Tertiary Education Scholarship Scheme for children of cocoa farmers will be rolled out in the 2025/26 season, with full implementation starting in the 2026/27 academic year. The government has also launched a Ghana Cocoa Traceability System to ensure cocoa is traced from farm to port, meeting the European Union’s Deforestation Regulations.
Major reforms are underway to refocus COCOBOD on increasing cocoa yields and supporting farmers. The Ghana Cocoa Board Act will be amended to protect the cocoa industry, and COCOBOD will no longer engage in quasi-fiscal activities. “COCOBOD must focus on increasing cocoa yields, improving the cocoa value chain, and the wellbeing of the cocoa farmer,” the statement emphasised.
