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The Government of Ghana has announced a significant boost to cocoa producer prices and introduced wide-ranging reforms aimed at revitalizing the cocoa sector, supporting farmers, and aligning the industry with global standards. Producer Price Increased by 62.58%
Effective Thursday, 7th August 2025, the producer price of cocoa will rise from US$3,100 per tonne to US$5,040 per tonne a 62.58% increase in US dollar terms. This equates to GHS51,660 per tonne or GHS3,228.75 per 64kg bag, based on an average exchange rate of GHS10.25 to the US dollar.
This new rate reflects 70% of the gross Free-On-Board (FOB) value of US$7,200 per tonne, fulfilling President Mahama’s pledge to pay farmers 70% of the FOB price. By comparison, the 2024/2025 season paid farmers 63.9% of FOB value.
Finance Minister Dr. Cassiel Ato Forson explained that this increase follows a stronger Ghana Cedi, lower inflation, and government subsidies introduced earlier in 2025 to protect farmers from income losses.
Government Rolls Out Free Input Support
As part of measures to improve productivity, the government is reintroducing the Free Cocoa Fertilizer Programme beginning this crop season. Farmers will receive: Free liquid and granular fertilizers, Free insecticides, Free fungicides, Free spraying machines and Free flower inducers
These inputs are aimed at increasing yields and boosting farmer incomes.
Scholarship and Traceability Initiatives
Two new programmes are also set to take off:
1. Cocoa Tertiary Scholarship Scheme: From the 2026/2027 academic year, children of cocoa farmers will benefit from tertiary education scholarships.
2. Cocoa Traceability System: Starting 2025/2026, cocoa will be traceable from farm to port, ensuring it meets EU standards on deforestation, child labour, and sustainability ahead of new regulations in December 2025.
Restructuring COCOBOD
The government announced plans to streamline the Ghana Cocoa Board (COCOBOD) by:
Restricting it to its core mandate of boosting yields and supporting farmers.
Banning quasi-fiscal activities.
Transferring cocoa road projects to the Ministry of Roads and Highways.
Amending the Ghana Cocoa Board Act to prevent deviations from its primary role.
Commitment to Cocoa’s Future
Dr. Forson reaffirmed government’s confidence in COCOBOD’s new leadership and stressed the administration’s commitment to restoring cocoa’s role as the backbone of Ghana’s economy.
“Government is committed to providing the needed support to boost yields, sustain the cocoa industry and reclaim its lost glory as the mainstay of Ghana’s economy,” he added.
Source: channel247online.com/Prince Kpabitey
