Ghanaian cocoa farmers are set to receive a major income boost following the government’s decision to increase the producer price of cocoa by more than 60 percent for the upcoming 2025/2026 season.
Effective Thursday, August 7, the producer price of cocoa will rise from US$3,100 to US$5,040 per tonne—a 62.58% increase, according to Finance Minister Dr. Cassiel Ato Forson.
The new rate accounts for 70% of the Free-On-Board (FOB) value, which is pegged at US$7,200 per tonne.
“This increase in the producer price represents 70% of the gross Free-On-Board (FOB) value of $7,200 per tonne and aligns with President Mahama’s promise to pay cocoa farmers 70% of the FOB price,” Dr. Forson stated in a release issued on Monday, August 4, after a meeting of the Producer Price Review Committee (PPRC), which he chaired.
Dr. Forson said the Mahama administration’s review was based on 100,000 tonnes of cocoa sold at US$2,600 per tonne last season, alongside global market forecasts for the upcoming year.
Domestically, the new price translates to GHS51,660 per tonne using an average exchange rate of GHS10.25 to the dollar. Farmers will now receive GHS3,228.75 per 64-kilogram bag of cocoa—up from the previous GHS3,100.
The minister emphasized that the increase is a strategic move to protect farmers from currency fluctuations and inflation.
He noted that since Q2 2025, the government maintained a stable price in cedi terms, effectively subsidizing farmers by GHS1,114 per bag to compensate for the strong performance of the local currency.
“This is coming on the back of a strong Ghana Cedi and declining inflation, reflecting Government’s commitment to improving the livelihoods of our cocoa farmers. Since the second quarter of 2025, Government has 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. This measure by Government was to protect the cocoa farmer against the loss of income due to the strong performance of the Cedi,” Dr. Forson revealed.
In addition to the new pricing, the PPRC has approved updated rates and fees for all actors in the cocoa value chain, including buyers, hauliers, warehouse managers, and other operational stakeholders.
Dr. Forson added that preparations for the new season are underway, with COCOBOD providing jute sacks and logistics to ensure a smooth start.
