Government has announced an increase in the producer price of cocoa from GHS49,600 ( US$3,100) per tonne to GHS51,660 ( US$5,040) per tonne for the 2025/26 crop season, which begins on August 7, 2025.
It has by this decision increased the producer price significantly by 62.58 per cent in dollar terms.
Dr Cassiel Ato Forson, the Minister for Finance, who chaired the Producer Price Review Committee said the increase in the producer price represented 70 per cent of the gross Free-On-Board (FOB) value of $7,200 per tonne, and aligned with President Mahama’s promise to pay cocoa farmers 70 per cent of the FOB price.
Dr Forson made the announcement at a press briefing in Accra on Monday.
He said it was significant to note that for the 2024/25 cocoa season, the previous NPP administration set an FOB value of US$4,850 per tonne of cocoa, and the producer price at US$3,100, representing 63.9 per cent of FOB, even though the world market price at the time was much better.
The Minister said the Gross FOB value was arrived at using outstanding cocoa contracts of about 100,000 tonnes sold at US$2,600 per tonne in the 2023/2024 crop season, and average forecast for the 2025/2026 crop season.
“At an average exchange rate of GHS10.25 to the US Dollar for the 2025/2026 crop season, the Government is pleased to announce an increase in the producer price of cocoa from GHS49,600 per tonne to GHS51,660 per tonne,” he added.
He said this further translated to an amount of GHS3,228.75 per bag of 64-kilogram gross weight of cocoa.
He said in the improved price was on the back of a strong Ghana Cedi and declining inflation, reflecting Government’s commitment to improving the livelihoods of cocoa farmers.
The Minister said since the second quarter of 2025, Government had taken steps to maintain the Cedi equivalent of the US$3,100 per tonne at GHS16 to the US$1, translating to GHS49,600 per tonne.
He said this measure by Government was to protect the cocoa farmer against the loss of income due to the strong performance of the Cedi.
Dr Ato Forson said by maintaining the price at GHS3,100 per bag for several months now amidst the strong performance of the Ghana Cedi, Government had subsidised the cocoa farmer with an amount of GHS1,114 for each bag of cocoa sold since the second quarter of 2025.
“This intervention by Government moved the farmer share of the FOB from 63.9% to over 99 per cent,” he said.
The Producer Price Review Committee has also approved rates, margins, and fees for all other stakeholders in the cocoa supply chain.
These include buyers’ margin, haulers’ rate, warehousing and internal marketing costs fees for disinfestation grading and sealing, and, weighing scale inspection.
He said in preparation for the new season, COCOBOD had made available jute sacks and related logistics for the smooth take-off of the 2025/2026 crop Season.
He said the government had reintroduced the free cocoa fertiliser programme as an additional support to the Ghanaian cocoa farmer, beginning the 2025/2026 crop year.
Dr Forson said beginning this crop year, President Mahama’s administration would supply free cocoa fertilisers (both liquid and granular), free insecticides, free spraying machines, free fungicides, and free flower inducers to farmers.
Government advised cocoa farmers to apply these inputs solely for the purpose of improving cocoa yield and their income.
He said President Mahama had introduced a Tertiary Education Scholarship Scheme for children of cocoa farmers.
Consequently, in the 2025/26 season, COCOBOD will develop modalities and implement the Cocoa Tertiary Scholarship Scheme for children of cocoa farmers, which will take effect from the 2026/27 academic year.
He said beginning 2025/2026 crop season, COCOBOD would roll-out a Ghana Cocoa Traceability System.
This system will ensure that cocoa produced in Ghana can be traced from a plot of land to a port of shipment.
He said the all-new system would ensure that Ghana was in full compliance with the due diligence requirements of the European Union Deforestation Regulations which take effect from December, 31 2025.
The Cocoa Traceability System places Ghana in a better position to supply cocoa that is traceable, deforestation-free, child labour-free, and compliant with EU regulations.
“Beginning this year, COCOBOD will focus solely on its core mandate and this measure is to place COCOBOD firmly on the path of recovery and position COCOBOD to deliver critical services to the cocoa farmer and support the Ghanaian economy,” he added.
He said as part of the 2026 Budget, the Ghana Cocoa Board Act would be amended to make it illegal for COCOBOD to deviate or stray from its core mandate to protect the cocoa industry.
COCOBOD will no longer engage in quasi-fiscal activities. It will be a prohibition. COCOBOD must focus on increasing cocoa yields, improving the cocoa value chain and the wellbeing of the cocoa farmer, he said.
He said subsequently, Government has decided to transfer all ongoing cocoa roads projects to the Ministry of Roads and Highways.
“Government reaffirms its confidence in the new leadership of COCOBOD to turnaround the cocoa industry,” he said.
The Minister reiterated the Government’s commitment to providing the needed support to the Ghana Cocoa Board to enable it boost cocoa yields, sustain the cocoa industry and reclaim its lost glory as the mainstay of Ghana’s economy.
Source: Access Agric
