…Mahama Hikes Producer Price to $5,040 per Tonne Effective August 7.
The government of Ghana, has approved a significant increase in the producer price of cocoa, raising it from US$3,100 to US$5,040 per tonne for the upcoming 2025/2026 cocoa season.
The announcement was made by Finance Minister Dr. Cassiel Ato Forson via a social media post on Monday, August 4, following a high-level meeting of the Producer Price Review Committee (PPRC), which he chairs.
Dr. Forson explained that the revised price constitutes a substantial 62.58 per cent increase in US dollar terms and is in line with President John Dramani Mahama’s commitment to ensure that cocoa farmers receive at least 70 per cent of the FOB value of cocoa.
“Government has by this decision increased the producer price significantly… representing 70% of the gross FOB value of $7,200 per tonne,” Dr. Forson stated.
He emphasized that the increment is not only historic but also aimed at restoring fairness and dignity to the hard-working cocoa farmers whose toil sustains Ghana’s leading cash crop export.
In comparing the new pricing policy with that of the previous administration, the Minister highlighted that under the New Patriotic Party (NPP) government in the 2024/25 season, cocoa farmers were paid only US$3,100 per tonne at a time when the FOB value stood at US$4,850.
This, he noted, represented just 63.9 per cent of the FOB value, well below the 70 per cent benchmark now being implemented under the Mahama-led government.
Dr. Forson further clarified that the current FOB value is derived from a weighted average of contracts already sold at US$2,600 per tonne during the 2023/24 crop year, along with forward projections for the 2025/2026 season, based on prevailing international market conditions and cocoa demand forecasts.
With an average exchange rate of GH¢10.25 to the US dollar, the revised producer price translates to GH¢51,660 per tonne, which is equivalent to GH¢3,228.75 per 64-kilogramme bag of cocoa.
This is expected to significantly boost the income levels of cocoa farmers and encourage increased production in the upcoming season.
The new price will officially take effect from Thursday, August 7, 2025, and will be implemented across all cocoa-growing regions through the Ghana Cocoa Board (COCOBOD) and its licensed buying companies.
This policy move reaffirms President Mahama’s long-standing position on farmer-centered governance and underscores his administration’s focus on inclusive growth and rural economic empowerment.
By Prince Ahenkorah