Cocoa Farmers Smile as Government Hikes Producer Price by Over 62% – New Rate Takes Effect August 7
By: Nana Kwasi Roka
In a bold move aimed at honouring a key campaign promise and boosting the welfare of cocoa farmers, the Government of Ghana has announced a substantial increase in the producer price of cocoa for the 2025/2026 crop season.
Chairman of the Producer Price Review Committee (PPRC) and Minister for Finance, Dr. Cassiel Ato Forson, revealed that following a committee meeting, the government has raised the producer price from US$3,100 per tonne to US$5,040 per tonne – a remarkable 62.58% increase in dollar terms.
The new price, which takes effect from Thursday, August 7, 2025, represents 70% of the gross Free-On-Board (FOB) value of $7,200 per tonne – fulfilling President John Dramani Mahama’s pledge to ensure cocoa farmers receive 70% of the FOB price.
“This marks a significant shift from the previous NPP administration, which pegged the 2024/25 FOB value at US$4,850 per tonne but offered farmers only 63.9% of that amount, despite stronger global market conditions,” Dr. Forson noted.
The current gross FOB value was calculated using outstanding cocoa contracts of about 100,000 tonnes sold at US$2,600 per tonne during the 2023/2024 crop season and the average forecast for the upcoming season.
In Ghanaian cedi terms, the new rate moves from GHS49,600 to GHS51,660 per tonne, based on an average exchange rate of GHS10.25 to the US dollar. This translates to GHS3,228.75 per bag of 64kg gross weight.
Farmers are expected to begin receiving payments under the new pricing regime starting August 7, as government reaffirms its commitment to improving livelihoods in the cocoa sector.
