Gov’t raises cocoa price to GH¢3,228 per bag

Cocoa farmers in the country are set to earn GH¢3,228.75 per 64-kilogramme bag for the upcoming 2025/2026 season, following a major upward adjustment in the producer price announced by the government.

The new rate, which translates to GH¢51,660 per tonne, represents a 62.6 percent increase over the previous price and is scheduled to take effect from Thursday, August 7, 2025.

The cedi-denominated increase aligns with the government’s policy objective of returning 70 percent of the Free-On-Board (FOB) value of cocoa exports to farmers and fulfils a key pledge by President John Mahama to improve farmer incomes and reform the operations of the Ghana Cocoa Board (COCOBOD).

Finance minister Dr. Cassiel Ato Forson, who made the announcement, said the new producer price corresponds to a dollar value of US$5,040 per tonne, up from US$3,100. He explained that the updated FOB benchmark of US$7,200 per tonne was based on outstanding sales contracts and forward market trends.

Dr. Forson said the adjustment is a response to the local currency’s recent strength and falling inflation.

“Government has maintained the dollar price of US$3,100 per tonne at a GH¢16 fixed exchange rate since the second quarter, effectively subsidising farmers,” he noted.

He stated that the intervention lifted farmer’s share of FOB to over 99 percent during that period.

The announcement follows criticism of the previous administration’s pricing, which paid farmers US$3,100 – 63.9 percent of the then-FOB price of US$4,850 – even as global cocoa prices remained strong.

Global developments

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

As of the beginning of 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.

Cocobod reforms

Beyond pricing, government plans to roll out a series of policy and operational changes at the Ghana Cocoa Board (COCOBOD) which oversees the sector. These include reintroduction of free fertiliser, insecticides, spraying machines and fungicides from the 2025/26 season onward. COCOBOD will also launch a Tertiary Education Scholarship Scheme for children of cocoa farmers, with implementation due to begin in the 2026/27 academic year.

In a significant operational shift, government will prohibit COCOBOD from engaging in quasi-fiscal activities such as financing road construction. All cocoa roads projects will be handed over to the Ministry of Roads and Highways, with a forthcoming amendment to the Cocoa Board Act intended to codify the regulator’s focus on core functions such as improving yield and safeguarding the cocoa value chain.

A national Cocoa Traceability System will also be launched this season to track cocoa from farm to port, ensuring compliance with the European Union’s Deforestation Regulations which take effect at the end of 2025.

According to Dr. Forson, this move will enhance Ghana’s access to premium markets by guaranteeing that its cocoa is “traceable, deforestation-free, child labour-free and EU-compliant”.

These new measures are part of a broader strategy to restore the cocoa industry’s pivotal role in the economy.

“Government is confident in the new leadership at COCOBOD and will provide all necessary support to increase yields and sustain the sector,” the minister said.

The Producer Price Review Committee has also approved revised rates for buyers, transporters, warehousing and other stakeholders in the supply chain to reflect the new producer price.

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