Editorial: Cocoa producer price hike rewards farmers

A 62.58% producer price hike has been announced for the 2025/2026 cocoa season, raising it from US$3,100 to US$5,040 per tonne.

This landmark decision was taken by the Producer Price Review Committee (PPRC) chaired by the Minister for Agriculture, ahead of the new cocoa season which opens this week on Thursday, August 7.

The new price represents 70% of the gross Free-On-Board (FOB) value of US$7,200 per tonne, aligning with President John Mahama’s promise to pay cocoa farmers 70% of the FOB price.

The previous NPP administration set the FOB value at US$4,850 per tonne for the 2024/25 season and the producer price at US$3,100, which represented 63.9% of the FOB despite better global market prices at the time.

At an average exchange rate of GH¢10.25 to US$1, the new producer price in cedi terms is  GH¢51,660 per tonne – up from GH¢49,600 – which translates to GH¢3,228.75 per 64kg bag.

This move comes on the back of a strong Ghana cedi and declining inflation. Government also announced its reintroduction of aFree Cocoa Fertiliser Programme starting in the 2025/2026 crop season.

The minister announced a reintroduction of the free cocoa fertiliser programme as an additional support to the Ghanaian cocoa farmer. Farmers will receive free fertiliser (liquid and granular), insecticides, spraying machines, fungicides and flower-inducers.

Meanwhile, government urged farmers to use the inputs solely to improve yields and income.

Additionally, as part of broader support, government has introduced a Tertiary Education Scholarship Scheme for children of cocoa farmers. COCOBOD will roll out this initiative in the 2025/26 season, with full implementation beginning in the 2026/27 academic year.

In a communiqué, Finance Minister Dr. Cassiel Ato Forson said the adjustment was a response to recent strength of the local currency and falling inflation. He stated that the intervention lifted farmer’s share of FOB to over 99 percent during that period.

Globally, cocoa prices reached historic highs in early 2025, with futures peaking above        US$11,000 per tonne in both London and New York during January amid widespread crop failures in Ghana and Côte d’Ivoire, which account for more than 60 percent of global supply.

As of beginning August 2025, spot prices have eased to around US$8,100–8,300 per tonne – still far above historical norms.

According to the International Cocoa Organisation (ICCO), the 2024/25 crop year experienced one of the largest global deficits in over two decades – driving sustained price pressure despite recent production gains.

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