Ghana Cuts Cocoa Farmgate Price to $3,580, Introduces Bond Financing Strategy
Ghana has reduced the farmgate price paid to cocoa farmers to $3,580 per metric tonne for the remainder of the 2025/2026 crop season, a significant adjustment aimed at keeping its cocoa competitive amid declining global prices.
The new rate brings Ghana’s producer price closer to international benchmarks, which have dropped to around $4,000 per tonne—nearly half of what they were a year ago.
Previously, the country maintained a farmgate price of about $5,300 per tonne, a premium that officials now say made Ghanaian cocoa less attractive to global buyers.
Finance Minister Cassiel Ato Forson explained that the high pricing had discouraged purchases, leaving large quantities of cocoa unsold.
According to him, buyers were increasingly unwilling to purchase Ghana’s cocoa due to its relatively higher cost.
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Ghana, the world’s second-largest cocoa producer, has faced mounting pressure as the pricing gap led to delayed payments for farmers.
The backlog in payments created financial strain for thousands of households, with many struggling to cover basic expenses such as food, school fees, and farm maintenance.
To address these concerns, the government has instructed the Ghana Cocoa Board (COCOBOD) to immediately begin clearing outstanding arrears owed to farmers.
Beyond the price cut, authorities unveiled a new financing framework that will rely on domestically issued cocoa bonds managed by the regulator.
Repayment of these bonds will be tied to proceeds from cocoa sales within the same crop year.
Officials say this model is intended to reduce dependence on foreign borrowing while improving liquidity within the sector.
The government also plans to introduce legislation that will align farmgate prices more closely with international market trends, while guaranteeing farmers at least 70% of the gross Free on Board (FOB) price.
Farmer associations have indicated they are willing to accept lower future prices if outstanding payments are settled promptly.
In addition, Accra is seeking to boost local value addition. Currently, Ghana processes between 30% and 40% of its cocoa domestically.
Authorities aim to increase that figure to at least 50% by the 2026/2027 crop season, including revitalising the state-owned Cocoa Processing Company to support expanded processing capacity.
The reforms signal a broader effort to stabilise Ghana’s cocoa industry while ensuring long-term sustainability for farmers and the national economy.
