Gov't increases Cocoa Producer Price from US$3,100 to US$5,040 per tonne
In a bold move to revitalise Ghana’s cocoa sector and reaffirm its commitment to farmers, the Government of Ghana has announced a significant increase in the producer price of cocoa for the 2025/2026 season.
The new price has been pegged at US$5,040 per tonne, up from US$3,100, representing a 62.58% increase in dollar terms.
The announcement was made following a decision by the Producer Price Review Committee (PPRC), chaired by the Minister for Agriculture, ahead of the official opening of the new cocoa season on Thursday, August 7, 2025.
“It is instructive to note that the Government has by this decision increased the producer price significantly by 62.58% in US$ terms,” the Minister declared, highlighting the move as a historic step in realigning cocoa prices with international benchmarks.
This adjustment pushes the producer price to 70% of the gross Free-On-Board (FOB) value, currently estimated at US$7,200 per tonne — a direct fulfilment of President John Mahama’s pledge to ensure cocoa farmers receive 70% of the FOB price.
In stark contrast, the former NPP administration had pegged the FOB value at US$4,850 for the 2024/25 season and paid farmers US$3,100 per tonne, equating to just 63.9% of the FOB, despite higher global prices at the time.
The government revealed that this year’s gross FOB value was calculated by factoring in 100,000 tonnes of cocoa sold at US$2,600 per tonne in the 2023/2024 season, alongside projected sales in the upcoming crop year.
With an average exchange rate of GHS10.25 to US$1, the new price translates to GHS51,660 per tonne, or GHS3,228.75 per 64kg bag, compared to the previous GHS49,600 per tonne.
“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 noted.
In an effort to shield farmers from currency-related income losses, the government had earlier implemented a buffer policy by maintaining a fixed cedi-to-dollar exchange rate of GHS16 to US$1 for cocoa purchases pegged at US$3,100 per tonne. This intervention effectively amounted to a GHS1,114 per bag subsidy from Q2 2025 onward.
“This intervention by Government moved the farmer share of the FOB from 63.9% to over 99%,” the Minister said, underscoring the administration’s aggressive pro-farmer stance.
The PPRC has also revised the margins and service charges for various players in the cocoa value chain — including licensed buyers, hauliers, warehouse operators, and quality assurance institutions — ensuring efficiency and fairness across the board.
To guarantee a smooth start to the season, COCOBOD has made available the necessary logistics and jute sacks across all cocoa-producing regions.
Free Fertiliser Programme Returns
In a major policy reinstatement, the government also announced the reintroduction of the Free Cocoa Fertiliser Programme, a cornerstone of President Mahama’s earlier term.
“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 declared.
Farmers will benefit from free supplies of liquid and granular fertilisers, insecticides, fungicides, spraying machines, and flower inducers, with a clear directive that these resources be used strictly to enhance yields and boost farmer incomes.
This sweeping reform package signals a clear reset in Ghana’s agricultural agenda — one driven by targeted support, improved producer incentives, and a renewed sense of fairness for the farmers whose labour remains the backbone of the country’s economy.