Civil society group questions impact of new cocoa producer price

The government has raised the producer price of cocoa from GH¢49,600 to GH¢51,660 per tonne,  equivalent to GH¢3,228.75 per 64-kilogramme bag, for the 2025/2026 season, a move it says will improve incomes for farmers.

Announcing the change in Accra on Monday, August 4, 2025, Finance Minister Dr. Cassiel Ato Forson said the price represents 70 per cent of the gross Free-On-Board (FOB) value of $7,200 per tonne.

This, he noted, marks an increase from last season’s $3,100 to $5,040 per tonne, representing a 62.58 per cent rise in dollar terms.

According to Dr. Forson, the adjustment, which takes effect on August 7, is supported by a strong cedi, easing inflation, and measures aimed at shielding farmers from currency volatility. 

However, reacting to the announcement, the Ghana Civil-Society Cocoa Platform (GCCP) on Tuesday, August 5, described the increase in cedi terms as modest, amounting to only 4.1 per cent.

The group said this would not be enough to address the economic challenges faced by cocoa farmers.

While noting the rise in dollar value, it argued that high input and labour costs, climate change impacts, and cross-border smuggling continue to reduce profitability.

The coalition also raised concerns about transparency in the pricing process. It said earlier assurances that farmers would receive 70 per cent of the global market price had shifted to a 70 per cent share of the lower FOB price.

The GCCP acknowledged the government’s planned input supplies and traceability system but cautioned against political interference in their distribution. It also warned that many farmers were not yet prepared for the EU’s compliance requirements.

In its statement, the GCCP urged the government to introduce mid-term price reviews to reflect world market changes and curb smuggling.

It also called for financial support to local licensed buying companies and action to address input affordability and climate resilience.

The group further asked for expanded farmer training in sustainable practices and improvements to infrastructure in cocoa-growing areas, including roads and storage facilities.

The government has set a production target of about 650,000 tonnes for the 2025/2026 season and says it will direct COCOBOD to concentrate on increasing yields and improving the welfare of farmers.