THE government has announced a new cocoa producer price and a set of reforms aimed at restoring the financial viability of the cocoa sector and safeguarding farmers’ interests.
The new producer price, effective Thursday, February 12, 2026, is GH¢41,392 per tonne (GH¢2,587 per bag), representing 90 per cent of the gross FOB price of $4,200 per tonne.
The Finance Minister, Dr Cassiel Ato Forson, explained that the 2025/2026 cocoa season began in August 2025 with a producer price of GH¢51,660 per tonne (70 per cent of $7,200/tonne).
After Côte d’Ivoire set a price 20 per cent higher than Ghana’s, Ghana raised its price to GH¢58,000 per tonne to remain competitive and prevent cross-border smuggling; however, world cocoa prices declined sharply from October 2025.
He said COCOBOD continued selling cocoa until prices fell below $6,400 per tonne, the estimated cost from farm gate to port. Current average world prices stand at $4,100 per tonne, making Ghanaian cocoa relatively expensive.
Dr Forson attributed COCOBOD’s liquidity challenges to a 2024/2025 financing model where buyers pre-financed purchases after the collapse of the traditional syndicated loan arrangement. He explained that production shortfalls also worsened the situation, with COCOBOD projecting 800,000 tonnes in 2023/2024 but producing only 432,145 tonnes, creating rollover contracts and losses exceeding $1 billion.
He said COCOBOD also defaulted on a $70 million bridge facility, with total legacy debts of GH¢5.8 billion, including GH¢3.7 billion to the Ministry of Finance and GH¢1.38 billion to the Bank of Ghana.
In response, he noted that cabinet had approved reforms to restructure the sector. Key measures include:
- Presentation of a new COCOBOD Bill to Parliament to allow automatic producer price adjustments linked to world prices and exchange rates, guaranteeing farmers at least 70 per cent of gross FOB.
- Introduction of a new financing model supported by a revolving bond fund from the 2026/2027 season.
- Mandating 50 per cent of cocoa beans to be processed locally to boost value addition and job creation.
- Revival of Produce Buying Company (PBC) and Cocoa Processing Company (CPC).
- Transfer of cocoa road liabilities of GH¢4.35 billion to the Ministries of Roads and Finance.
- Forensic audit and criminal investigation into COCOBOD activities over the past eight years.
Dr Forson assured that the measures would protect farmers’ interests and position the sector for sustainable growth.
BY KINGSLEY ASARE
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