Business

‘Cocoa is the lifeblood of our rural economy’ – Ato Forson

Finance Minister Dr. Cassiel Ato Forson has announced a significant increase in the producer price of cocoa, set to take effect on August 7, 2025. He says the move honours President Mahama’s pledge to ensure farmers receive a fair share of global market prices.

The announcement follows a meeting of the Producer Price Review Committee (PPRC) on Cocoa, which agreed on the new rate for the 2025/2026 crop season. According to Dr. Forson, the new price reflects the government’s commitment to improving the livelihoods of cocoa farmers while responding to improved market dynamics, a stronger cedi, and declining inflation.

Under the new arrangement, cocoa farmers will now receive US$5,040 per tonne, up from the previous US$3,100, representing a 62.58% increase in dollar terms. This adjustment translates 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 for the upcoming season.

Dr. Forson stressed that this new rate represents 70% of the Gross Free-On-Board (FOB) value of US$7,200 per tonne, in line with President Mahama’s earlier pledge. “Cocoa is the lifeblood of our rural economy,” the Finance Minister noted. “This increment is not just about figures—it’s about dignity, fairness, and fulfilling a promise to our hardworking farmers.”

President Mahama had earlier reiterated this promise during a durbar at Juaboso on July 17, 2025, where he declared: “We will honour our promise to pay our hardworking farmers 70 per cent of the world market price of cocoa.”

Dr. Forson also compared the new pricing structure to that of the previous administration. For the 2024/25 cocoa season, the New Patriotic Party (NPP) government set the FOB value at US$4,850 per tonne, with a producer price of US$3,100—representing 63.9% of the FOB, even though market conditions were more favourable at the time.

The revised Gross FOB value was determined using outstanding contracts from the 2023/2024 crop season—approximately 100,000 tonnes sold at US$2,600 per tonne—and projected market performance for the upcoming season.

Government officials say the new price regime demonstrates a shift toward prioritising farmers’ welfare while aligning Ghana’s cocoa pricing policy with international benchmarks and sustainable practices.

The new prices will officially take effect nationwide on Thursday, August 7, 2025.