In a bold move to improve the livelihoods of Ghana’s cocoa farmers, the government has announced a significant increase in the producer price of cocoa and introduced a raft of reforms aimed at reviving the struggling cocoa sector.
The producer price has been raised from GHS49,600 to GHS51,660 per tonne for the upcoming 2025/26 crop season, marking a 62.58% jump in dollar terms — from US$3,100 to US$5,040 per tonne. This new price, according to Finance Minister Dr. Cassiel Ato Forson, represents 70% of the Gross Free-On-Board (FOB) value of cocoa, in line with President Mahama’s campaign promise to ensure cocoa farmers receive a fairer share of global market prices.
“This increase is not just about numbers,” Dr Forson said. “It’s about restoring dignity to our farmers and protecting their incomes in a volatile economic climate.”
He revealed that unlike the previous administration, which paid farmers only 63.9% of the FOB price, the new price translates into GHS3,228.75 per 64kg bag — and reflects the government’s effort to shield farmers from the effects of currency fluctuations and inflation.
Protecting Farmers from Currency Shocks
Highlighting the impact of the Ghana Cedi’s strength, the Minister said government had previously maintained the dollar value of cocoa earnings for farmers by pegging the price at GHS49,600 per tonne, amounting to a subsidy of over GHS1,114 per bag during the second quarter of 2025. This move effectively raised the farmers’ share of the FOB price to over 99%.
Free Fertiliser Programme Returns, Scholarship Scheme Introduced
In a further boost, the government has reinstated the free cocoa fertiliser programme, which will now include free insecticides, spraying machines, flower inducers, and fungicides — all starting this crop season. Farmers have been urged to use the inputs responsibly to improve yields and increase earnings.
To support the next generation, the government will also launch a Tertiary Education Scholarship Scheme for children of cocoa farmers. The initiative, spearheaded by COCOBOD, will take effect from the 2026/27 academic year.
Traceability and Transparency at the Core
COCOBOD will also introduce a Cocoa Traceability System this season to meet the European Union’s new regulations on deforestation and child labour. The system will enable every batch of Ghanaian cocoa to be tracked from farm to port, ensuring the product is ethically sourced and environmentally friendly.
“This is not just compliance — it’s about making Ghana the global gold standard for sustainable cocoa production,” Dr Forson said.
Reforms to Refocus COCOBOD
As part of broader sector reforms, government has resolved to refocus COCOBOD strictly on its core mandate: increasing yields, improving the cocoa value chain, and enhancing farmer wellbeing. This includes transferring all ongoing cocoa road projects to the Ministry of Roads and Highways and amending the Ghana Cocoa Board Act to prohibit COCOBOD from engaging in non-core, quasi-fiscal activities.
“COCOBOD must get back to basics — we are taking decisive steps to put it on the path to recovery and make it a champion for the cocoa farmer once again,” Dr Forson emphasised.
He also reaffirmed the administration’s confidence in COCOBOD’s new leadership and reiterated the government’s commitment to sustaining the cocoa industry as a pillar of Ghana’s economic growth.
