The Finance Minister, Dr Cassiel Ato Forson, has announced a significant increase in the producer price of cocoa for the 2025/2026 season, setting the price at GHS3,228.75 per 64-kilogram bag. The decision, revealed during a statement on Monday, marks a 62.58% rise in US dollar terms, fulfilling a key campaign pledge by President John Dramani Mahama to ensure farmers receive 70% of the Free-On-Board (FOB) value.
The new price, effective from Thursday, 7 August 2025, elevates the producer price from US$3,100 per tonne to US$5,040 per tonne, based on an average exchange rate of GHS10.25 to the US dollar. This translates to a total of GHS51,660 per tonne, up from the previous GHS49,600 per tonne set during the 2024/25 season under the former administration.
Dr Forson, who chairs the Producer Price Review Committee (PPRC) on Cocoa, explained that the adjustment reflects 70% of the gross FOB value of US$7,200 per tonne. This move contrasts with the previous New Patriotic Party (NPP) government, which paid farmers 63.9% of an FOB value of US$4,850 per tonne, despite more favourable world market conditions at the time.
“The Gross FOB value was arrived at using outstanding cocoa contracts of about 100,000 tonnes sold at US$2,600 per tonne in the 2023/2024 crop season, and average forecasts for the 2025/2026 crop season,” Dr Forson stated in his announcement see full post here.
The increase has sparked mixed reactions on social media, with some praising the government’s efforts to honour its commitments, while others argue the rise falls short of expectations. Supporters, including user @jackson_zippy, hailed it as “a massive win for our cocoa farmers,” crediting the decision to “real leadership.” However, critics like @Talkless03 expressed disappointment, noting that the GHS128.75 per bag increment (from GHS3,100) represents less than a 7% rise in local currency terms, falling far below campaign promises of GHS6,000 per bag.
The announcement comes amid growing anticipation for the new cocoa season, which begins on 7 August. It follows pressure from farmer groups and opposition figures, who had accused the government of delaying price adjustments despite high global cocoa prices. The Ghana National Cocoa Farmers Association had previously advocated for a price range of GHS6,000 to GHS7,000 per bag, citing rising production costs and the impact of forward contracts that limit farmers’ benefits from international premiums.
Dr Forson emphasised the government’s commitment to supporting the backbone of Ghana’s agricultural economy, stating that the price hike aligns with President Mahama’s pledge to restore dignity and fairness to cocoa farmers. However, concerns linger about the real value of the increase, with some pointing to the recent appreciation of the Ghanaian cedi, which may dampen farmers’ earnings when converted from dollars.
As Ghana, the world’s second-largest cocoa producer, prepares for the new season, the decision is seen as a critical step in balancing global market dynamics with domestic economic priorities. Further details on implementation and support measures for farmers are expected in the coming days.
Bigstuff Media Ghana will continue to monitor this developing story and provide updates as they emerge.