The Government of Ghana has declared a substantial increase in the producer price of cocoa for the upcoming 2025/2026 season. The price will rise from US$3,100 to US$5,040 per tonne, marking an impressive 62.58% increase in dollar terms.
This announcement was made by the Minister for Finance, Dr. Cassiel Ato Forson, who chaired the Producer Price Review Committee (PPRC) that made the decision.
As the cocoa season prepares to kick off on Thursday, August 7, 2025, Minister Forson emphasized the significance of this price adjustment. “It is instructive to note that the Government has by this decision increased the producer price significantly by 62.58% in US$ terms,” he stated, sending a wave of optimism through the farming community.
This newly established price now represents 70% of the gross Free-On-Board (FOB) value, which is set at US$7,200 per tonne. This commitment aligns with President John Mahama’s promise to ensure cocoa farmers receive a fair share of the market value.
In historical context, the previous administration had pegged the FOB value at US$4,850 per tonne for the 2024/25 season, setting the producer price at US$3,100, a mere 63.9% of the FOB value. Remarkably, this was at a time of more favorable global market prices.
The government ensured that the new gross FOB value was fairly calculated, taking into account outstanding contracts for 100,000 tonnes sold at US$2,600 per tonne in the 2023/2024 crop season and expectations for the forthcoming season.
With the average exchange rate standing at GHS10.25 to US$1, the new producer price translates to GHS51,660 per tonne. This is an increase from GHS49,600, resulting in an adjusted price of GHS3,228.75 per 64kg bag, indicating a positive response to the strengthened Ghana Cedi and dropping inflation rates.
To further safeguard farmers from potential income loss due to the Cedi’s strength, the government had previously stabilized the cedi equivalent of US$3,100 per tonne by maintaining an exchange rate of GHS16 to US$1 for several months. This move provided a significant GHS1,114 subsidy per bag sold since Q2 2025, raising the farmer share of the FOB from 63.9% to over 99%.
In addition to the price increase, the PPRC has approved revised margins and fees for key players in the cocoa value chain, such as buyers, hauliers, warehouse operators, and quality control personnel. To ensure a smooth start to the season, COCOBOD, the industry regulator, has made arrangements for jute sacks and logistics.
The government has also reintroduced the Free Cocoa Fertiliser Programme, providing farmers with free fertilisers, insecticides, spraying machines, fungicides, and flower inducers. Minister Forson expressed satisfaction with this initiative, highlighting it as a crucial support system aimed at enhancing yields and farmers’ income.
Furthermore, the government has announced a Tertiary Education Scholarship Scheme for children of cocoa farmers, set to commence in the 2025/26 season and fully implemented by the 2026/27 academic year. Additionally, a Ghana Cocoa Traceability System will be launched, ensuring the traceability of cocoa from the farm to the port, in compliance with upcoming European Union Deforestation Regulations, which take effect on December 31, 2025.
These ambitious reforms also entail amendments to the Ghana Cocoa Board Act, making it imperative for COCOBOD to focus exclusively on its core mission of improving cocoa yields and supporting farmers. The government has pledged its support to restore cocoa’s status as a cornerstone of Ghana’s economy, reaffirming faith in the new leadership at COCOBOD.
As the new cocoa season approaches, the government’s efforts reflect a strong commitment to ensuring the welfare of cocoa farmers, with hopes of fostering growth and sustainability in the industry.
Source: Apexnewsgh.com/Ngamegbulam Chidozie Stephen
