In a significant move to improve the livelihoods of cocoa farmers, the Government of Ghana has announced a major increase in the producer price of cocoa for the 2025/2026 crop season. The new producer price has been raised from US$3,100 to US$5,040 per tonne, marking a 62.58% increase in dollar terms. This announcement was made ahead of the official opening of the new cocoa season on August 7.
The revised price aligns with President John Mahama’s pledge to ensure that cocoa farmers receive at least 70% of the gross Free-On-Board (FOB) value. The gross FOB value has been set at US$7,200 per tonne for this season, with the new producer price representing exactly 70% of that figure. This represents a marked improvement from the previous administration’s figures, where the FOB value was pegged at US$4,850 per tonne, and the producer price stood at US$3,100, which constituted only about 63.9% of the FOB value, despite higher global market prices at the time.
In local currency terms, using an average exchange rate of GH₵10.25 to the US dollar, the new price equates to approximately GH₵51,660 per tonne or GH₵3,228.75 per 64-kilogram bag. This represents an increase from the previous price of approximately GH₵49,600 per tonne or GH₵3,100 per bag, signaling a significant rise for farmers in cedi terms as well.
Beyond the producer price increase, the government has approved revised margins and fees for all stakeholders within the cocoa value chain. These include licensed buying companies, hauliers, warehouse operators, and quality control units, which are expected to ensure a fair distribution of incentives across the sector and enhance operational efficiencies.
Additional incentives for cocoa farmers include measures aimed at improving income stability and boosting confidence among farmers and stakeholders. The government and COCOBOD (Ghana Cocoa Board) have committed to continuing support through policies that promote transparency in pricing and fight against challenges such as smuggling and illegal farming activities, which threaten the sector’s sustainability.
Dr. Cassiel Ato Forson, Minister for Finance and Chairman of the Producer Price Review Committee (PPRC), emphasised that the price hike reflects careful consideration of prevailing global market trends and domestic economic conditions. It also fulfils President Mahama’s promise to fairly compensate cocoa farmers, who form the backbone of Ghana’s agricultural economy.
This increase is expected to motivate farmers to increase production and maintain Ghana’s competitiveness in the global cocoa market. It recognises the critical role cocoa farmers play in the nation’s economy, contributing to revenues that support national development projects such as electricity provision and road infrastructure improvement across the country.
The new price takes effect from Thursday, August 7, 2025, coinciding with the start of the 2025/2026 cocoa season, representing a fresh financial boost for cocoa farmers nationwide.
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