The Ghanaian government is poised to announce a new cocoa producer price before the 2025/26 crop season opens on August 7, but despite surging global cocoa prices, there’s a catch: the recent strengthening of the cedi may quietly suppress gains for farmers.
Currently, Ghanaian farmers receive GH₵3,100 per 64kg bag, translating to roughly GH₵49,600 per tonne. Yet on the international market, cocoa is trading at near record highs — with June 2025 prices averaging US$8,400 per tonne, and July futures holding between US$7,400 and US$7,800. That means each exported bag of cocoa is worth between US$470 and US$540 abroad. But thanks to the cedi’s strength, those dollar gains don’t stretch as far when converted back home.
As Finance Minister Dr. Cassiel Ato Forson prepares to unveil the new price after consulting the Producer Price Review Committee, farmers, industry analysts, and political observers are keenly watching how the government balances its books with its social commitments.
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President John Mahama has reaffirmed Ghana’s pledge to give cocoa farmers at least 70% of the world market price. But in practice, that benchmark becomes tricky when each US dollar now yields fewer cedis due to currency appreciation.
This exchange rate dynamic presents a policy dilemma:
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Should the government slash COCOBOD’s share of earnings — including budgets for operations, loan servicing, and price stabilization — in order to boost the producer price?
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Or should it maintain those allocations, accepting that the cedi’s strength caps the increase farmers might otherwise enjoy?
What’s at Stake
This year’s pricing announcement comes at a delicate moment. Ghana is still recovering from inflationary pressures and fiscal tightening under an IMF program. A higher cocoa price could be politically expedient in the lead-up to the December 2025 elections — but could also strain public finances if not managed carefully.
According to sources close to the negotiation table, the new price could see a modest increase, possibly around GH₵3,500 to GH₵3,800 per bag. While such a rise would be welcomed by the over 800,000 cocoa farming households, it may fall short of expectations given the global market boom.
But all eyes are on whether COCOBOD and the government will sacrifice revenue buffers in favor of farmers. With Ghana’s cocoa sector facing rising production costs, aging farms, and climate-related risks, ensuring decent earnings is critical for both livelihoods and long-term supply stability.
Conclusion
While the strengthening cedi reflects broader macroeconomic improvements, it also paradoxically limits how much Ghana’s cocoa farmers can benefit from a once-in-a-generation price surge. The government now faces a tough call: protect fiscal stability, or prioritize rural incomes.
The cocoa price announcement expected in the coming days will not just set the tone for the season — it will signal how far Ghana is willing to go to protect its farmers in the face of a strengthening currency and tightening budget lines.
Last Updated on July 30, 2025 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
