The government’s proposed reform of Ghana’s cocoa sector, including a guarantee that farmers will receive not less than 70 percent of the gross Free-on-Board (FOB) price of cocoa exports, could provide farmers with greater certainty to plan their livelihoods, expand their farms and make long-term investments in production.
For years, cocoa farmers have operated under significant uncertainty, particularly during periods of sharp fluctuations in international cocoa prices. The challenges became more pronounced when global cocoa prices surged, but concerns emerged over delayed payments to some farmers after delivering their produce. Many farmers complained that the uncertainty affected their ability to meet basic household needs, including feeding their families, paying school fees and financing farm activities.
The new pricing mechanism proposed under the government’s planned COCOBOD Bill is therefore expected to give farmers clearer visibility into their potential earnings, allowing them to make better decisions on farm expansion, input purchases, rehabilitation of ageing cocoa farms and other investments needed to improve productivity.
Presenting the 2026 Mid-Year Fiscal Policy Review to Parliament, Finance Minister Dr. Cassiel Ato Forson announced that “Government will submit a new COCOBOD Bill to Parliament to repeal and replace the Ghana Cocoa Board Act, 1984 (PNDCL 81).”
He explained that the legislation would fundamentally change how producer prices are determined, stating that “the proposed legislation will introduce a new producer pricing mechanism that aligns producer prices with movements in international cocoa prices, exchange rate developments, and other relevant market conditions.”
Ato Forson further assured farmers that “we will also guarantee cocoa farmers not less than 70 percent of the gross Free-on-Board (FOB) price,” a commitment expected to give producers greater certainty over the income they can expect from their harvests.
For many cocoa-growing households, such predictability could mark a significant shift. Knowing that a minimum share of export earnings is guaranteed would make it easier for farmers to budget for household expenses, finance their children’s education, invest in fertilizers and pesticides, rehabilitate old farms and even expand acreage where feasible.
The proposed legislation also seeks to address broader structural challenges within the cocoa industry. The bill will establish a new financing framework for cocoa purchases and related operations, aimed at restoring COCOBOD’s long-term financial sustainability and operational efficiency. It will also require that not less than 50 percent of cocoa beans produced in Ghana are processed locally, supporting the country’s industrialisation and value-addition agenda.
For farmers, however, the immediate significance lies in the promise of income certainty. In recent years, many growers expressed frustration over payment delays after delivering their cocoa, with some saying they struggled to feed their families, pay school fees and prepare their farms for the next production season.
The proposed reforms could therefore help restore confidence by allowing farmers to make informed financial decisions based on clearer expectations of what they will earn.
Nevertheless, the success of the reforms will largely depend on implementation and replying on the drafted reforms. While the government’s assurances are likely to be welcomed across cocoa-growing communities, farmers will expect the commitments to be honoured in practice.
Delivering consistently on the promised pricing formula and ensuring timely payments will be essential to rebuilding trust in the sector. Policy certainty not only encourages investment at the farm level but also strengthens confidence across the cocoa value chain.
As Parliament considers the new COCOBOD Bill, farmers will be looking beyond the promises to see whether the reforms translate into tangible improvements in their incomes and livelihoods.
