Government to Declare Updated Cocoa Producer Price Today

The Government of Ghana is expected to unveil a new producer price for cocoa today, August 4, 2025, as preparations gear up for the official launch of the 2025/2026 cocoa season. The announcement comes after months of extensive review by pricing committees and consultations with key industry stakeholders.

The revised price is expected to reflect a noticeable increase when assessed in U.S. dollar terms, owing to strong global cocoa market performance. However, economic observers caution that the real value of the new rate in Ghana cedis could be affected by the recent sharp appreciation of the local currency.

Currently, cocoa producers are paid GH¢3,100 per 64kg bag or GH¢49,600 per tonne. While any increment would generally be welcomed by farmers, the strengthening of the cedi against the dollar raises questions about how much of that increase will be felt in local purchasing power.

The announcement is being made just three days before the new cocoa season officially begins on Thursday, August 7, 2025, signaling the government’s intent to ensure transparency and preparedness ahead of the season’s kickoff.

President John Mahama, speaking in July, reaffirmed his administration’s commitment to ensuring Ghanaian cocoa farmers receive a fair share of global prices. He reiterated a policy goal of guaranteeing farmers at least 70% of the world market price, a move aimed at restoring equity and strengthening livelihoods in the cocoa-growing communities.

“Cocoa farmers are the heart of our agricultural sector,” President Mahama said. “We are committed to ensuring they are not shortchanged.”

As of the night before the anticipated announcement, cocoa was trading at approximately $7,555 per tonne on the international market — one of the highest prices in recent years. Yet, despite this favorable global outlook, the appreciation of the Ghanaian cedi could mean a reduced value when converted, raising concerns among farmer groups and analysts.

In an interview on JoyNews’ PM Express Business Edition, Chief Executive Officer of COCOBOD, Dr. Randy Abbey, weighed in on the potential challenges of the exchange rate’s impact on farmer incomes.

“Normally, high global prices would mean better earnings for our farmers,” Dr. Abbey said. “But with the cedi gaining strength, what we gain in dollars could be lost in conversion. This is a delicate moment.”

He further noted that the government has already been absorbing some of the cost burden for farmers. For the past five months, Ghana has reportedly been paying cocoa producers up to 90% of the global market value — a strategy seen as a subsidy to protect farmer incomes amidst market and currency volatility.

Insiders suggest that pricing committees took several factors into account when preparing their recommendation, including production costs, world market trends, currency shifts, and the government’s current fiscal position.

The upcoming announcement is being closely monitored not only by cocoa farmers but also by exporters, agribusinesses, and policymakers, as it sets the tone for investment and production for the next twelve months.

With over 800,000 smallholder farmers depending directly on cocoa, the crop remains central to Ghana’s economy. Beyond its contribution to export earnings, cocoa farming supports entire communities and fuels growth in rural regions.

The 2025/2026 price will therefore have significant implications—not just economically, but also socially and politically.

Meanwhile, COCOBOD and the Ministry of Agriculture are expected to accompany the price announcement with other policy updates, including improved input distribution strategies and new farmer support programs.

As Ghana continues to compete on the global cocoa stage, the country’s ability to maintain a fair and stable pricing structure is critical. The coming season will test how well the government can navigate the dual challenges of fluctuating exchange rates and farmer welfare while safeguarding its reputation as a leading cocoa producer.

All eyes now turn to the official announcement later today, with hopes that the new rate will reflect fairness, sustainability, and long-term commitment to the nation’s cocoa sector.