Cocoa farmers may have faced another reduction in producer prices if government had strictly followed developments on the international market, according to the Ghana Cocoa Board (COCOBOD).
Head of Public Affairs at COCOBOD, Jerome Sam, said the decision to maintain the producer price was driven largely by concerns about farmers’ incomes and livelihoods rather than prevailing global market conditions.
Speaking on Joy News’ PM Express, Mr. Sam disclosed that a review based solely on international cocoa prices could have resulted in another downward adjustment.
“If we are to consider what is prevailing on the international market, then of course the price would have gone down again,” he said.
His comments provide fresh insight into the rationale behind government’s decision to keep producer prices unchanged despite a significant correction in global cocoa markets after last year’s record rally.
According to Mr. Sam, authorities deliberately chose to shield farmers from another financial setback, arguing that many producers had already endured a difficult period and required greater income stability.
“The farmer has already been hit, so we need to make sure that the prices remain unchanged,” he said.
The remarks come at a time when international cocoa prices remain far below the historic highs recorded in 2024 and early 2025. Although cocoa prices rose to about $3,972 per tonne on June 15, up 2.69% from the previous day, they remain approximately 60.7% lower than a year ago, reflecting a sharp reversal from the supply-driven price surge that pushed cocoa to record levels.
Recent market trends have pointed to improving supply conditions in major producing countries. Cocoa futures recently traded around $3,700 per tonne, their lowest level since early May, as inventories continued to rise and production prospects improved.
Latest market data showed cocoa stocks monitored by the Intercontinental Exchange (ICE) rising to a 1.75-year high of 2.93 million bags. Dealers have also reported strong cocoa arrivals in Côte d’Ivoire during the current 2025/26 crop season, supported by above-average rainfall across key growing regions that has improved soil moisture and crop development.
While the near-term supply outlook has weighed on prices, concerns remain over future production. Early surveys suggest that cocoa output in both Ghana and Côte d’Ivoire could decline during the 2026/27 season, raising questions about the sustainability of current supply gains.
Mr. Sam noted that Ghana’s approach differs from that of neighbouring Côte d’Ivoire, where producer prices are adjusted more frequently in response to movements in the international market.
He explained that Ghana’s pricing system traditionally seeks to provide farmers with greater certainty throughout the crop season, with producer prices often remaining unchanged once announced.
According to him, the latest decision reflects government’s effort to balance farmer welfare with the long-term sustainability of the cocoa sector.
“Inasmuch as we are protecting the farmer, we are also ensuring a sustainable sector,” he said.
The decision means cocoa farmers will continue to receive the current producer price for the remainder of the season, despite market conditions that COCOBOD says could have justified another reduction.
