Dr. Cassiel Ato Forson and Dr. Randy Abbey
Cocoa producer price for the remainder of the 2025/2026 crop season has been reduced to GH¢2,587 per bag from the GH¢3,625 set at the start of the season, as part of the reforms to stabilise the sector.
Minister for Finance, Dr. Cassiel Ato Forson, who announced this at a press conference yesterday in Accra, said the reduction was driven by volatility in the international market, stating that cocoa prices, which peaked at over $12,000 per tonne in late 2024, have now dropped by more than 63% year-on-year to about $3,772 per tonne as of February 2026.
He said the new rate is expected to inject immediate cash flow into the cocoa sector to enable government to pay farmers, especially those affected since November, 2025.
According to the Finance Minister, the reduction will also reflect the reality of the world market as well as guarantee the sustainability of the sector.
“The sector has sustained this country for years, created jobs, and the mainstay of our economy, but it is undergoing challenges that need reform, as a result of that, the Producer Price Review Committee (PPRC) thereby announces that effective today, Thursday, February 12, 2026, the new producer price for the remainder of the 2025/2026 crop season will now be GH¢41,392 per tonne and GH¢2,587 per bag,” he stated.
“The reality today is that our beans are very expensive, and buyers are not buying. There is no point when the world market price is $4,200 per tonne to buy cocoa at $7,200 per tonne,” he said.
The Minister further explained that farmers will now also receive 90% of the achieved gross Free On Board (FOB) price of $4,200 per tonne to cushion them against the global price slump and to help sustain the sector, while directing Ghana Cocoa Board (COCOBOD) to start immediate payment of all affected cocoa farmers.
Dr. Forson also indicated that to address the challenges over cocoa pricing, the new COCOBOD Bill will be laid before Parliament to introduce automatic price adjustments tied to global prices that will enable cocoa farmers receive a minimum of 70 percent benefits.
“We are going to propose in the law that will be sent to Parliament that there should be an automatic price adjustment. The cocoa farmer will receive a minimum of 70%. It will now be a law. We strongly believe this will transform the industry,” he stressed.
A major pillar of the reform is a new financing model to replace the current system, which the Minister described as unsustainable after the collapse of the traditional syndicated loan arrangement.
“The current financing model was invented as a necessity after the syndicated loan failed after 32 years of successful implementation, and it has proven not to be sustainable. Under the new system, COCOBOD will raise domestic cocoa bonds to create a revolving fund to finance purchases within each crop year. The model is also expected to revive indigenous licensed buying companies and restore the state-owned Produce Buying Company (PBC) to full operations,” he stated.
“With immediate effect, the remainder of the beans for the 2025/2026 crop year should be allocated for domestic processing,” Dr. Forson added.
He mentioned that from the beginning of the 2026/2027 crop season, 50 percent of the country’s cocoa beans would be processed locally, and directed the conversion of approximately GH¢5.8 billion in liabilities into longer-term instruments to restore positive equity and strengthen the balance sheet.
The Minister also mentioned that to address the financial challenges facing COCOBOD, road liabilities amounting to GH¢4.35 billion will be transferred to the Ministry of Roads and Highways and the Ministry of Finance.
He said cabinet also ordered forensic audit and investigation into the institution’s operations over the past eight years, asking the Attorney General to investigate COCOBOD’s GH¢32.9 billion debt stock.
The announcement of the reforms in the cocoa sector follows an emergency meeting by cabinet to address challenges in the cocoa sector, particularly over debts owed cocoa farmers for several months.
By Vera Owusu Sarpong