Ghana has increased the producer price of cocoa by more than 60% ahead of the 2025-26 season, a move expected to put pressure on top cocoa-producing rivals like Côte d'Ivoire.
The move could also raise global cocoa costs even further, at a time when supply chains are already tightening due to climate shocks and ageing farms.
Finance Minister Cassiel Ato Forson said the rate paid to farmers will rise from $3,100 to $5,040 per tonne, a 62.58%increase.
"The cocoa farmer remains a critical pillar of our economy, and this government is committed to ensuring they benefit from the gains we are making," the minister said at a news conference in the capital Accra.
Price increase aligns with president's campaign promise
Ghana, the world's second-largest cocoa producer, typically sets its prices ahead of Côte d'Ivoire, which leads global production.
Côte d'Ivoire's government is currently paying farmers 2,200 CFA francs per kilogramme, about $3,900 per tonne.
The substantial increase in Ghana is in line with a campaign promise by President John Mahama, elected in December, to raise cocoa farmers' share of export earnings to at least 70% of the Free-On-Board (FOB) value – the price of cocoa at the point it is loaded onto a ship for export.
The FOB price has shot up in recent years, with the current $7,200 price reflecting a blend of earlier contracts signed at $2,600 per tonne during the 2023-24 season and forward sales forecasts for 2025-26, Forson said.
Improved macroeconomic conditions
Farmers were previously only receiving 63.9% of the FOB price, or $3,100 of the $4,850 FOB value, in the 2024-25 season.
Forson said the revised price also accounts for improved macroeconomic conditions, including a strengthening cedi and easing inflation.
Ghana's price controls are meant to stabilise earnings for farmers, especially during price dips.
Forson also announced the reintroduction of the government's free cocoa fertiliser programme, which includes the distribution of fertilisers, insecticides, fungicides, spraying machines and flower inducers to increase yields and income.
