Ghanaian cocoa farmers are benefiting from an unexpected windfall as the country’s weakening cedi has boosted local earnings, offsetting the impact of falling international cocoa prices.
In August 2025, the government set the cocoa producer price at GHS3,228.75 per 64-kg bag, or GHS51,660 per tonne, equivalent to US$5,040 at an exchange rate of GHS10.25 per US dollar, representing 70% of the Free-On-Board (FOB) price of US$7,200 per tonne.
By October 3, with the cedi having depreciated to about GHS12.45 per US dollar, the government raised the producer price to GHS3,625 per bag, or GHS58,000 per tonne, marking an increase of roughly GHS400 per bag, or 12.27% in local currency terms, even as the USD equivalent fell to US$4,654 per tonne.
Analysis by The High Street Journal suggests the increase in Ghana’s cocoa producer price is largely influenced by the cedi’s depreciation rather than rising international prices. While global cocoa prices fell by around 10.6% from August to October, the weaker cedi ensured that farmers received more in local currency, protecting their real income and cushioning them from market volatility.
Economists note that currency depreciation can enhance export competitiveness by making products cheaper for foreign buyers. China, for instance, has deliberately maintained a relatively low exchange rate for the renminbi, keeping its goods globally competitive and driving export volumes.
Similarly, Ghana’s weaker cedi has improved local currency earnings for cocoa exports, though analysts caution that prolonged depreciation carries risks, including inflation and higher costs for imported inputs.
For Ghanaian cocoa farmers, the combined effect of government pricing adjustments and cedi depreciation has translated into higher earnings in local currency, effectively cushioning them from international price drops and placing a smile on their faces.
