Mahama’s government raises cocoa price by over 60%

The Government has announced a significant increase in the producer price of cocoa, raising it from US$3,100 to US$5,040 per tonne for the 2025/2026 crop season. The new price takes effect from Thursday, August 7.

This adjustment represents a 62.58% increase in dollar terms and accounts for 70% of the gross Free-On-Board (FOB) value of US$7,200 per tonne—fulfilling President John Mahama’s commitment to ensure cocoa farmers receive no less than 70% of the FOB value.

Finance Minister Dr. Cassiel Ato Forson, who chairs the Producer Price Review Committee (PPRC), said the new pricing was informed by current market trends and prior sales agreements. He noted that approximately 100,000 tonnes of cocoa were sold in the 2023/2024 season at US$2,600 per tonne, with projected averages factored in for 2025/2026.

Using an exchange rate of GHS10.25 to the US dollar, the new price moves the local rate from GHS49,600 to GHS51,660 per tonne. This translates to GHS3,228.75 per 64-kilogram bag of cocoa.

Dr. Forson highlighted that the decision is supported by recent macroeconomic improvements, including a stronger Ghana cedi and declining inflation. He added that the price increase demonstrates government’s commitment to improving the welfare of cocoa farmers and ensuring fairness within the cocoa value chain.

In contrast, during the 2024/2025 season, the previous administration set an FOB value of US$4,850 and paid farmers US$3,100—representing 63.9% of the FOB—despite stronger global prices at the time.