The government has announced a reduction in the producer price of cocoa to GH¢41,392 per tonne and GH¢2,587 per bag for the remainder of the 2025/2026 crop season, citing a sharp decline in global cocoa prices and mounting liquidity pressures within the sector.
The decision was unveiled at a press conference in Accra on Thursday, February 12, 2026, by the Minister for Finance, Dr. Cassiel Ato Forson, who described the adjustment as a difficult but necessary step in response to changing international market conditions.
According to the Minister, the move is aimed at aligning Ghana’s cocoa pricing structure with prevailing global trends while cushioning farmers from the full impact of the downturn as much as possible.
Dr. Forson explained that the 2025/2026 cocoa season commenced in August 2025 with a producer price of GH¢51,660 per tonne.
At the time, the price was calculated based on 70 per cent of a gross free-on-board (FOB) price of US$7,200 per tonne, using an exchange rate of GH¢10.25 to the dollar.
He noted that the initial pricing decision was informed by relatively strong global prices and efforts to maintain competitive returns for Ghanaian cocoa farmers.
However, in October 2025, developments in the sub-region prompted a revision.
Following Côte d’Ivoire’s announcement of a higher producer price for its farmers, Ghana responded by increasing its own farm gate price to GH¢58,000 per tonne, equivalent to GH¢3,625 per bag.
The upward adjustment at the time was primarily aimed at curbing the risk of cross-border smuggling, as price disparities between the two leading cocoa-producing countries often encourage illegal trade.
Dr. Forson indicated that subsequent developments on the international market have significantly altered the pricing landscape, leading to the current downward revision.
He stressed that global cocoa prices have experienced a sharp fall in recent months, exerting pressure on Ghana’s cocoa financing arrangements and overall sector liquidity.
“The realities of the international cocoa market have changed considerably,” the Minister said, adding that government must act prudently to safeguard the long-term sustainability of the industry.
He further explained that maintaining the previous producer price in the face of declining global prices would have created severe financial strain on the cocoa sector, particularly on the Ghana Cocoa Board (COCOBOD).
According to him, the government had to strike a careful balance between ensuring fair compensation for farmers and preserving the financial health of the sector.
The new producer price of GH¢41,392 per tonne, he noted, reflects current international benchmarks and exchange rate considerations, while still seeking to protect farmers’ incomes within the constraints of the market.
Industry analysts say the adjustment is likely to generate mixed reactions among cocoa farmers, many of whom have welcomed previous price increases amid rising input costs.
Some farmer groups have expressed concern about the impact of the reduction on household incomes, especially in cocoa-dependent communities.
Nevertheless, government officials maintain that the adjustment is grounded in economic realities and aimed at preventing deeper instability within the sector.
Dr. Forson reiterated that the government remains committed to supporting cocoa farmers through productivity enhancement programmes, input subsidies, and improved extension services.
He also underscored the importance of safeguarding Ghana’s position as one of the world’s leading cocoa producers, noting that responsible fiscal management is critical to sustaining the industry.
The revised producer price takes immediate effect and will apply for the remainder of the 2025/2026 crop season, with authorities pledging to continue monitoring global market trends to inform future pricing decisions.
