The Government of Ghana has announced a significant increase in the producer price of cocoa for the 2025/2026 season, raising the price per tonne from $3,100 to $5,040, effective Thursday, August 7, 2025.
This new rate translates to GHS3,228.75 per 64kg bag, up from the current GHS3,100, a difference of GHS128.75 per bag.
The announcement was made by Finance Minister Dr. Cassiel Ato Forson, who chairs the Producer Price Review Committee (PPRC). In a release issued on Monday, August 4, Dr. Forson said the new price reflects the government’s commitment to improving the welfare of cocoa farmers and aligns with the NDC government’s pledge to deliver fairer value to producers.
“Government is pleased to announce an increase in the producer price of cocoa from US$3,100 per tonne to US$5,040 per tonne,” Dr. Forson stated in a press release issued on Sunday.
He noted that the increment represents 70% of the gross Free-On-Board (FOB) value of $7,200 per tonne, fulfilling a campaign promise made by President John Mahama to cocoa farmers.
“This increase in the producer price represents 70% of the gross Free-On-Board (FOB) value of $7,200 per tonne, and aligns with President Mahama’s promise to pay cocoa farmers 70% of the FOB price,” Dr. Forson added.
By comparison, Dr. Forson criticised the previous NPP administration’s pricing model, which he said offered farmers a lower share of the export value.
“For the 2024/25 cocoa season, the previous NPP administration set an FOB value of US$4,850 per tonne, and the producer price at US$3,100, representing 63.9% of FOB, even though the world market price at the time was much better.”
The gross FOB value for the new season, he explained, was based on a combination of about 100,000 tonnes of cocoa sold at US$2,600 per tonne during the 2023/2024 season and projections for the upcoming harvest.
He said with an average exchange rate of GHS10.25 to the US dollar, the new rate of GHS51,660 per tonne was arrived at, translating to the new per-bag value.
Dr. Forson also highlighted the government’s intervention earlier this year to stabilise cocoa farmers’ income despite exchange rate fluctuations.
“Since the second quarter of 2025, Government has taken steps to maintain the Cedi equivalent of the US$3,100 per tonne at GHS16 to the US$1, translating to GHS49,600 per tonne,” he said.
“By maintaining the price at GHS3,100 per bag for several months now amidst the strong performance of the Ghana Cedi, Government has subsidised the cocoa farmer with an amount of GHS1,114 for each bag of cocoa sold since the second quarter of 2025.”
He added that this action effectively moved the farmer’s share of the FOB value from 63.9% to over 99%.
Aside from pricing, the Finance Minister announced the reintroduction of the free cocoa fertiliser programme beginning this crop year, as well as a tertiary education scholarship scheme for children of cocoa farmers, to take effect in the 2026/2027 academic year.
“Beginning this crop year, President Mahama’s administration will supply free cocoa fertilisers (both liquid and granular), free insecticides, free spraying machines, free fungicides, and free flower inducers to farmers,” he said.
On regulatory reforms, Dr. Forson announced that COCOBOD will no longer engage in quasi-fiscal activities and will focus solely on its core mandate. He also revealed plans to transfer all cocoa roads projects to the Ministry of Roads and Highways.
“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,” he stated.
COCOBOD will also roll out a Ghana Cocoa Traceability System to meet European Union deforestation-free import regulations, which take effect at the end of 2025.
The new cocoa price takes effect nationwide starting Thursday, August 7, 2025.
