Ghana’s Cocoa Board (COCOBOD) stands to face increasing financial strain as world cocoa prices remain below the guaranteed farmgate price, highlighting persistent structural challenges in one of the country’s main export sectors.
The world cocoa price as of Tuesday, January 20, 202,6 stands at approximately $5,100 per tonne, which, at the prevailing Ghana cedi rate of GH¢10.84 per US dollar, converts to about GH¢55,284 per tonne.
This is below the GH¢58,000 per tonne paid to Ghanaian cocoa farmers for the 2025/26 season, leaving a gap of roughly GH¢2,716 per tonne that COCOBOD must absorb when exporting at international prices.
The story of this adjustment begins in August 2025, when the farmgate price for the 2025/26 cocoa season was initially set at GH¢51,660 per tonne, equivalent to GH¢3,228.75 per 64‑kg bag for farmers.
At the time, global cocoa prices ranged between $6,000 and $6,500 per tonne, providing room for Ghana to increase farmers’ earnings while remaining broadly aligned with international market levels. However, as The High Street Journal noted at the time, some of the gains from the higher world prices were partially offset when converted into cedis, as the strengthening Ghanaian cedi capped the dollar-based increase.
Following extensive stakeholder consultations, the farmgate price was revised in October 2025 to GH¢58,000 per tonne, equivalent to GH¢3,625 per 64‑kg bag, representing an increase of roughly GH¢400 per bag over the August level.
Since that adjustment, global prices have eased to around $5,100 per tonne, while the Ghana cedi has strengthened to GH¢10.84 per US dollar. In cedi terms, this places the world price at approximately GH¢55,284 per tonne, below Ghana’s fixed farmgate rate. The difference of roughly GH¢2,716 per tonne is effectively absorbed by COCOBOD when exporting cocoa at international prices.
The gap highlights the financial pressure COCOBOD faces when maintaining fixed farmgate prices amid fluctuations in world prices and currency movements. Farmers continue to receive the guaranteed rate for the 2025/26 season, insulating them from short-term market volatility.
Ghana is the world’s second-largest cocoa producer, and the sector contributes significantly to export revenue and rural employment. Changes in global cocoa prices, combined with shifts in the cedi, affect both government revenue from exports and COCOBOD’s capacity to maintain the guaranteed farmgate rate.
Officials have not indicated whether the recent drop in world prices will lead to adjustments in the farmgate price or changes in export arrangements.
By continuing to pay GH¢58,000 per tonne (GH¢3,625 per 64‑kg bag) to farmers, COCOBOD must bear the financial burden created by the difference between domestic and global cocoa prices.
