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The Government of Ghana has announced a substantial increase in the producer price of cocoa, raising it from US$3,100 to US$5,040 per tonne for the 2025/2026 cocoa season—a 62.58% increase.
The announcement was made on Monday, August 4 by Finance Minister Dr Cassiel Ato Forson in a social media post, following a meeting of the Producer Price Review Committee (PPRC), which he chairs.
“Government has by this decision increased the producer price significantly… representing 70% of the gross Free-On-Board (FOB) value of $7,200 per tonne,” Dr Forson stated.
Delivering on a Promise to Farmers
The price hike fulfills a key pledge made by President John Dramani Mahama to ensure that Ghanaian cocoa farmers receive at least 70% of the FOB value, the international benchmark used in cocoa pricing.
Dr Forson contrasted the new pricing model with that of the previous NPP administration, noting that in the 2024/25 season, cocoa farmers were paid $3,100 per tonne—just 63.9% of the FOB value at the time, which stood at $4,850.
New Pricing Breakdown
With the current average exchange rate at GH¢10.25 to the US dollar, the new price translates to:
- GH¢51,660 per tonne
- GH¢3,228.75 per 64kg bag of cocoa
The new price will officially take effect from Thursday, August 7, 2025.
FOB Value Calculation
The Minister clarified that the $7,200 FOB value was derived from a weighted average of:
- Contracts sold at $2,600 per tonne during the 2023/24 crop year
- Forward market forecasts for the upcoming 2025/26 season
This blend, according to the Finance Ministry, allows for a fair and future-focused pricing model that benefits both government planning and farmer income.
Boosting the Cocoa Sector
The increase is expected to provide a major economic boost for Ghana’s cocoa farmers, many of whom have long called for better returns amid rising costs of inputs and fluctuating global prices.
The government says the new pricing structure is part of broader reforms aimed at restoring equity and sustainability in Ghana’s cocoa sector.
