Ghana has announced a reduction in its farmgate cocoa price and unveiled a new domestic financing model aimed at revitalising demand, supporting farmers, and stabilising the nation’s cocoa industry amid a slump in global prices.
Brandspur Agriculture News reports that Finance Minister Cassiel Ato Forson confirmed the new farmgate price of 41,392 cedis (US$3,580) per metric ton for the remainder of the 2025/2026 crop season. This marks a significant decrease from the previous 58,000 cedis (US$5,300) per ton, set by the Ghana Cocoa Board (COCOBOD), which had made Ghanaian cocoa less competitive internationally.
Forson explained that falling global cocoa prices, now around US$4,000 per metric ton, have reduced demand and left large volumes of cocoa unsold. The minister highlighted that payment delays had left thousands of farmers struggling with basic needs such as food, school fees, and farm upkeep.
To restore confidence, the government has instructed COCOBOD to immediately begin repayment of outstanding arrears owed to cocoa farmers. In addition, a new domestic financing mechanism through cocoa bonds will be implemented, with bond repayments tied to cocoa sales within the same crop year, reducing reliance on external loans.
Legislation is also planned to link farmgate prices to international market rates while guaranteeing farmers at least 70% of the gross Free on Board (FOB) price. Cabinet approval has been granted for the conversion of approximately GH¢5 billion (US$455 million) in cocoa-related debt into structured financial instruments, easing COCOBOD’s financial burden.
Infrastructure support will be bolstered through a US$500 million facility from the World Bank to fund agricultural road construction in cocoa-growing regions. Moreover, the government plans to increase domestic cocoa processing from 30–40% to at least 50% in the 2026/2027 crop season and revive the state-owned Cocoa Processing Company to boost local value addition.
The reforms also include a new COCOBOD Bill that will restrict the regulator from engaging in non-core activities, such as quasi-fiscal spending and road construction, to improve accountability and financial discipline.
Forson emphasised that the combined measures — price adjustment, repayment of arrears, domestic financing, and increased processing — are designed to stabilise Ghana’s cocoa sector, enhance farmer welfare, and strengthen the country’s position in the global cocoa market.
This strategic approach reflects Ghana’s commitment to sustainable cocoa production, financial stability for farmers, and long-term competitiveness amid volatile international commodity markets.
