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The Government of Ghana has approved a major increase in the producer price of cocoa, raising it from US$3,100 to US$5,040 per tonne for the upcoming 2025/2026 season. This is the highest price cocoa farmers in the country have received in years and represents a 62.58% increase from the previous season.
The announcement was made by Finance Minister, Dr Cassiel Ato Forson, in a post shared on his official social media pages on Monday, August 4. The new price was approved after a meeting of the Producer Price Review Committee (PPRC), which the minister chairs.
According to Dr Forson, the new cocoa producer price is in line with President John Mahama’s campaign promise to ensure that cocoa farmers receive at least 70% of the Free-On-Board (FOB) value of cocoa exports. He said the latest adjustment means the farmers are now getting exactly 70% of the current gross FOB value of US$7,200 per tonne.
“Government has by this decision increased the producer price significantly, from US$3,100 to US$5,040 per tonne, representing 70% of the gross FOB value of US$7,200 per tonne,” Dr Forson stated.
The finance minister also used the opportunity to compare the new price policy with that of the previous New Patriotic Party (NPP) administration. He claimed that during the 2024/2025 season, the NPP government paid cocoa farmers only US$3,100 per tonne, even though the FOB value was US$4,850 — meaning farmers received just 63.9% of the international price at the time.
He explained that the new FOB value used to determine the current price is based on a mix of contracts sold at US$2,600 per tonne in the 2023/24 crop year, along with forward market projections for the 2025/2026 season. The projected increase is linked to rising global demand for cocoa and lower production from some top cocoa-producing countries due to climate-related challenges and disease outbreaks.
At an average exchange rate of GH¢10.25 to the US dollar, the new cocoa price translates to about GH¢51,660 per tonne or GH¢3,228.75 per 64kg bag of cocoa. This is a significant improvement for cocoa farmers who have for years complained about poor pricing, high input costs, and lack of adequate support from government.
The new producer price will officially take effect on Thursday, August 7, 2025.
The cocoa sector remains a vital part of Ghana’s economy. It employs hundreds of thousands of farmers and contributes billions of cedis annually in export earnings. Increasing the farmgate price is expected to boost farmer morale, improve rural livelihoods, and reduce smuggling of cocoa beans to neighbouring countries where farmers sometimes earn higher prices.
However, analysts have raised concerns about how the government intends to finance the increase, especially as Ghana continues to struggle with a high public debt burden and currency volatility. Some experts say the country must improve cocoa yield per hectare, reduce production costs, and invest in value addition through local processing of cocoa to sustain such price increases in the future.
The Ghana Cocoa Board (COCOBOD) is also expected to intensify efforts to prevent cocoa smuggling and ensure the beans meet international quality standards to maintain Ghana’s reputation as a top global cocoa producer.
For many cocoa farmers, the new pricing is a welcome relief. Some farmer unions have already expressed gratitude to the government, noting that the move will help cushion them against rising inflation and high costs of fertilisers and other farm inputs.
Still, they urged the government to follow through with timely payment and better extension services to truly transform the cocoa sector and make farming more attractive to the younger generation.
