The Government of Ghana has announced a major increase in the producer price of cocoa for the 2025/2026 season, raising it from US$3,100 to US$5,040 per tonne — a 62.58% increase in dollar terms.
The decision was taken by the Producer Price Review Committee (PPRC), chaired by the Minister for Finance, Dr Cassiel Ato Forson, ahead of the new cocoa season, which opens on Thursday, August 7, 2025.
“It is instructive to note that the Government has by this decision increased the producer price significantly by 62.58% in US$ terms,” the Minister said.
This new price represents 70% of the gross Free-On-Board (FOB) value of US$7,200 per tonne, aligning with President John Mahama’s promise to pay cocoa farmers 70% of the FOB price.
In comparison, the previous NPP administration set the FOB value at US$4,850 per tonne for the 2024/25 season and the producer price at US$3,100, which represented 63.9% of the FOB — despite better global market prices at the time.
The government explained that the new gross FOB value was calculated using outstanding contracts for 100,000 tonnes sold at US$2,600 per tonne in the 2023/2024 crop season, as well as forecasts for the upcoming season.
At an average exchange rate of GHS10.25 to US$1, the new producer price in cedi terms is GHS51,660 per tonne, up from GHS49,600, which translates to GHS3,228.75 per 64kg bag.
“This is coming on the back of a strong Ghana Cedi and declining inflation, reflecting the Government’s commitment to improving the livelihoods of our cocoa farmers,” the Minister added.
To protect farmers against income loss from the cedi’s strength, the government had maintained the cedi equivalent of US$3,100 per tonne at GHS16 to US$1 for several months, amounting to a GHS1,114 subsidy per bag sold since Q2 2025.
“This intervention by Government moved the farmer share of the FOB from 63.9% to over 99%,” the Minister stated.
In addition to the new pricing, the PPRC has also approved revised margins and fees for key players in the cocoa value chain — including buyers, hauliers, warehouse operators, and quality control units.
COCOBOD, the industry regulator, has made jute sacks and logistics available for a smooth start to the season.
Free Fertiliser Programme Reintroduced
The government also announced the reintroduction of the Free Cocoa Fertiliser Programme starting in the 2025/2026 crop season.
“I am pleased to announce that President Mahama’s Administration has reintroduced the free cocoa fertiliser programme as an additional support to the Ghanaian cocoa farmer,” the Minister said.
Farmers will receive free fertilisers (liquid and granular), insecticides, spraying machines, fungicides, and flower inducers. The government urged farmers to use the inputs solely to improve yields and income.
Cocoa Scholarship and Traceability Initiatives
As part of broader support, the government has introduced a Tertiary Education Scholarship Scheme for children of cocoa farmers. COCOBOD will roll out the initiative in the 2025/26 season, with full implementation beginning in the 2026/27 academic year.
The government also announced the rollout of a Ghana Cocoa Traceability System, beginning this season. The system is designed to ensure that cocoa can be traced from the farm to the port, in line with the European Union’s Deforestation Regulations effective from December 31, 2025.
“This all-new system will ensure that Ghana is in full compliance with the due diligence requirements of the European Union Deforestation Regulations,” the Minister said.
The traceability initiative will also guarantee that Ghanaian cocoa is deforestation-free, child labour-free, and fully EU-compliant.
Reforms at COCOBOD
The government is undertaking major reforms to refocus COCOBOD on its core mandate of increasing cocoa yields and supporting farmers.
“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,” the Minister announced.
All ongoing cocoa roads projects will be transferred to the Ministry of Roads and Highways, and COCOBOD will no longer engage in quasi-fiscal activities.
“COCOBOD must focus on increasing cocoa yields, improving the cocoa value chain and the wellbeing of the cocoa farmer,” the statement said.
Government reaffirmed its confidence in the new leadership of COCOBOD and pledged continued support to restore cocoa as the mainstay of Ghana’s economy.
