The Government of Ghana has officially increased the cocoa producer price from GH¢3,100 to GH¢3,228.75 per 64kg bag, effective Thursday, August 7, 2025, marking a 62.58% surge in dollar terms.
The announcement, made by Finance Minister Dr. Cassiel Ato Forson, pegs the new rate at US$5,040 per tonne, representing 70% of the US$7,200 gross Free-On-Board (FOB) value projected for the 2025/26 season.
“Government is pleased to announce an increase in the producer price of cocoa from US$3,100 per tonne to US$5,040 per tonne. This aligns with President Mahama’s promise to pay cocoa farmers 70% of the FOB price,” Ato-Forson said.
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However, behind the celebratory figures lies a more nuanced reality for Ghana’s cocoa farmers – who are paid in cedis, not dollars. While the producer price may have gone up by 63% in dollar terms, this translates to only a 4% increase in cedi terms due to the significant appreciation of the cedi and a breach of promise by the current government.
What does this mean for you?
The new cocoa producer price increase from GH¢3,100 to GH¢3,228.75 gives Ghanaian farmers a slight income boost, but it falls far short of what global prices suggest they should earn.
While government touts a 70% share of export value, this is based on older, lower-priced contracts - not current market highs.
The cedi’s appreciation further reduces how much farmers get in local currency.
Bottom line: Farmers are seeing some gains, but not their fair share. The full potential of the cocoa boom is still out of reach for now.
The 2025/26 hike does mark the highest nominal cocoa price per bag in Ghana’s history. While the GH¢ increase – from GH¢ 3,100 to GH¢ 3,228.75 – is modest in local currency (about 4.1%), the jump in dollar terms is substantial, climbing from US$3,100 to US$5,040 per tonne.
| Metric | 2024/25 Season | 2025/26 Season |
|---|---|---|
| Producer price (GH¢/tonne) | 49,600 | 51,660 |
| Producer price (GH¢/bag) | 3,100 | 3,228.75 |
| Producer price (USD/tonne) | 3,100 | 5,040 |
| % of gross FOB | 63.9% | 70% |
| Exchange rate used | ~GH¢16/US$ | GH¢ 10.25/US$ |
In the 2024/25 season, the previous administration set an FOB value of US$4,850 per tonne but offered farmers just US$3,100, drawing criticism from producer groups and smuggling-watch organisations and the current government, which insisted that the producer price be based on the global market prices.
In contrast, the new pricing formula uses a forecasted average FOB of US$7,200, and reflects poorly on Mahama’s campaign position that farmers should receive no less than 70% of Ghana’s cocoa earnings.
Dollar Figures Dominate Headlines – but Farmers Get Cedis
While the government has touted the new price as a major win – citing the jump from US$3,100 to US$5,040 per tonne, many analysts point out that the real change felt by farmers is far smaller.
Because of the cedi’s recent appreciation, the actual increase in local currency terms is just GH¢128.75 per bag, or roughly 4.1%. That’s a far cry from the 62.58% hike in dollar terms.
With the global market price for cocoa averaging US$9,000 per tonne this year, a 64kg bag – Ghana’s standard unit – effectively sells for around US$563. Using the government’s own exchange rate of GH¢ 10.25 to the dollar, that bag would be worth GH¢5,770.75 locally. Applying the promised 70% farmer share without any distortion to that figure yields GH¢4,039.52 per bag – significantly higher than the GH¢3,228.75 farmers are currently set to receive.
Analyst, @callmeAlfredo, on X [formerly Twitter], argues that cocoa farmers are worse off now than they were last year, based on the fact that inflation on the 4% nominal increment places it at an 8.5% decrease.
The government has announced a 4% nominal increase in cocoa farmgate prices. However, when adjusted for inflation, this translates to an 8.5% decrease compared to last season. In real terms, cocoa farmers are worse off than they were in 2024. Based on 12 years of data I have,… pic.twitter.com/zmmU6cxOXH
— Alfred (@CallmeAlfredo) August 4, 2025
Why the Shortfall?
The main reason for the gap lies in legacy forward contracts – pre-sold cocoa deals that the government must still honour. According to the Finance Minister, nearly 100,000 tonnes were sold at prices as low as US$2,600 per tonne under the previous administration.
These contracts heavily dilute Ghana’s revenue from the current record-high cocoa prices, which are now averaging over US$9,000 per tonne on the international market.
However, the current government failed to contextualise that when they made projections of an increment based on global market prices.
In effect, farmers are being paid a calculated “average” rate based not on today’s sky-high prices, but on a blend of past and present deals.
Additionally, the strengthening of the Ghanaian cedi, as reflected in the Bank of Ghana’s prevailing exchange rate, has also played a key role in limiting farmer gains. While a stronger cedi may signal macroeconomic stability, it reduces the local currency value of export earnings, meaning cocoa farmers receive less for each dollar earned abroad – a necessary evil.
The result: a government payout that looks strong on paper, but underwhelms in the field.