Cabinet on Wednesday, February 11, 2026, convened an emergency session to deliberate on recent developments in Ghana’s cocoa sector, following mounting concerns over pricing disparities and declining global market trends.
The meeting, chaired at the highest level of government, examined both historical and systemic challenges confronting the sector and took key policy decisions aimed at safeguarding Ghana’s cocoa industry.
According to Finance Minister Dr. Cassiel Ato Forson, the 2025/26 cocoa season commenced in August 2025 with a Producer Price of GH¢51,660 per tonne. The price was calculated as 70 percent of the Gross Free on Board (FOB) price of US$7,200 per tonne, using an exchange rate of 10.25 cedis to the US dollar.
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However, developments in the sub-region soon altered the dynamics.
On October 1, 2025, Côte d’Ivoire announced a new producer price that was 20 percent higher than Ghana’s. That decision, combined with subsequent movements in the exchange rate, created a significant price gap between the two countries.
Officials warned that the disparity posed a serious risk of smuggling, with Ghanaian cocoa potentially crossing borders to take advantage of the higher Ivorian prices.
In response, Ghana’s Producer Price Review Committee (PPRC) intervened. The committee adjusted the producer price upward to GH¢58,000 per tonne, reflecting a revised exchange rate of 11.5 cedis to the US dollar at the time.
The adjustment, government sources indicate, helped restore competitiveness in Ghana’s farmgate pricing and reduced the risk of large-scale smuggling of cocoa beans to Côte d’Ivoire.
Despite the intervention, new challenges emerged on the international market.
Falling World Market Prices
Soon after the price revision, global cocoa prices began to decline. From October 2025, the world market price trended downward. Despite the drop, COCOBOD continued selling cocoa until prices fell below US$6,400 per tonne, which represents the estimated cost of cocoa from the farmgate to the port.
Government officials now say the current strain in the sector is largely driven by the unwillingness of buyers to purchase Ghana’s cocoa because it has become uncompetitive on the international market. Cocoa from other producing countries is selling at significantly lower prices than Ghana’s producer price.
Liquidity Constraints and Financing Challenges
The situation has been compounded by COCOBOD’s limited liquidity. According to the Finance Ministry, COCOBOD did not have sufficient funds to purchase cocoa from farmers and hold stock for hedging or other trading decisions.
This constraint is linked to a financing model introduced in the 2024/25 season after the annual syndicated loan arrangement failed. Under that model, buyers, or off-takers, financed cocoa purchases directly. While the arrangement provided short-term relief, it left COCOBOD exposed and with limited flexibility.
The roots of the financial difficulties stretch further back.
By 2022, COCOBOD’s finances had deteriorated significantly, leading to a default and subsequent restructuring of Cocoa Bills in 2023. That same year, for the first time, the annual cocoa syndication suffered major delays due to waning confidence in Ghana’s economy. The first tranche of the loan was received only on December 22, 2023, four months after the season had begun.
Production Shortfall and Billion-Dollar Loss
In the 2023/24 crop season, COCOBOD projected output of 800,000 tonnes and entered into contracts for 786,672 tonnes. However, actual production came in at 432,145 tonnes — a 45 percent deviation from projections.
Industry experts note that normal variations in crop forecasts range between 5 and 15 percent. A deviation of 45 percent was unprecedented.
The shortfall resulted in rollover contracts amounting to 333,767 tonnes at an average price of US$2,661 per tonne. The financial impact was severe, with losses exceeding US$1 billion. Funds that could have supported cocoa farmers and other stakeholders were effectively wiped out.
In 2024, COCOBOD was unable to meet the final tranche payment of its syndicated loan due in July and had to rely on a US$70 million bridge financing facility from the Ministry of Finance to avert default. Despite an undertaking to repay the facility, COCOBOD defaulted on the obligation. The debt has since been inherited by the current management.
New Cocoa Price
The government has announced a reduction in the cocoa producer price, setting it at GH¢41,392 per tonne—equivalent to GH¢2,587 per bag—for the remainder of the 2025/2026 crop season.
The Minister further indicated that the new rate is expected to inject immediate liquidity into the cocoa value chain, helping to fast-track payments to farmers who have experienced delays in recent months and easing financial pressures at the farm level.