Farmers to earn GH¢2,587 per bag as government resets cocoa pricing formula
The government has reduced 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 fall in global market prices and mounting liquidity pressures within the sector.
Announcing the decision at a press conference in Accra on Thursday, February 12, 2026, the Finance Minister, Dr Cassiel Ato Forson, said the adjustment was necessary to reflect current international price realities while protecting farmers’ incomes as much as possible.
He explained that the 2025/2026 cocoa season began in August 2025 with a producer price of GH¢51,660 per tonne. At that time, the price was calculated at 70 per cent of a gross free-on-board price of 7,200 US dollars per tonne, using an exchange rate of 10.25 cedis to the dollar.
Following Côte d’Ivoire’s announcement of a higher producer price in October 2025 and movements in the exchange rate, Ghana revised its farm gate price upwards to GH¢58,000 per tonne, equivalent to GH¢3,625 per bag, to curb the risk of smuggling.
“The decision by the PPLC to increase the producer price of cocoa made Ghana’s farm gate price competitive and stemmed the potential smuggling of our cocoa beans,” Dr Forson recalled.
However, from October 2025, the global cocoa market began to weaken significantly. “From October 2025, unfortunately, the world market price of cocoa started dropping,” he said, adding that prices have since fallen from an average of 7,200 dollars per tonne to about 4,100 dollars per tonne.
According to the Minister, the steep decline left Ghana’s cocoa overpriced relative to competitors and created serious cash flow constraints for COCOBOD. “The world market price has dropped significantly from the average of 7,200 tones to 4,100 per tone, making Ghana’s cocoa beans uncompetitive and creating liquidity challenges,” he stated.
In response, the Producer Price Review Committee met under his chairmanship to reassess the producer price for the rest of the season.
“In order to cushion the farmer, the PPLC has recommended that the farmer be paid 90% of the achieved gross FOB of 4,200 US dollars per ton to mitigate the adverse impact on the farmer as a result of the fall in the world market price,” Dr Forson announced.
He then confirmed the new rates. “As a result of that, the PPLC thereby announces that effective today, Thursday, 12 February 2026, the new producer price for the remainder of the 2025-2026 crop season will now be 41,392 Ghana cedis per ton and 2,587 Ghana cedis per bag.”
The new price of GH¢41,392 per tonne translates directly into GH¢2,587 for each 64-kilogramme bag of cocoa, marking a reduction of GH¢16,608 per tonne and GH¢1,038 per bag from the October 2025 rate of GH¢58,000 per tonne and GH¢3,625 per bag.
Dr Forson said the adjustment was unavoidable if the sector was to remain viable. “This measure has become necessary to reflect the reality of the world market price of cocoa, ensure the injection of immediate liquidity for expedited payment of farmers and guarantee the sustainability of our cocoa sector,” he explained.
He assured farmers that despite the reduction, the government had opted to maintain a high producer share of export earnings at 90 per cent of the achieved gross FOB price, rather than the statutory minimum of 70 per cent.
In closing, the Finance Minister acknowledged the strain the volatility has placed on growers but expressed confidence in the broader reform programme. “Government wishes to convey its sincere appreciation to the Ghanaian cocoa farmer and all stakeholders for their forbearance and sacrifice over the years,” he said. “I wish to assure them that these reforms will protect the interest of the cocoa farmer and the cocoa sector. In fact, we strongly believe this will transform the industry.”