Historic Price Increase for Cocoa Farmers
In a move hailed by farmer groups, the cocoa producer price has been increased by 62.6%, rising from US$3,100 to US$5,040 per tonne. The adjustment, effective 7 August 2025, translates to GHS 51,660 per tonne or GHS 3,228.75 per 64-kg bag.
This pricing aligns with President Mahama’s campaign pledge to ensure farmers receive 70% of the Free on Board (FOB) value, a notable improvement from the 63.9% share in the previous season.
The price hike is expected to have multiple effects:
•Increased farmer income could stimulate rural economies and encourage reinvestment in farms.
•Potential upward pressure on global cocoa prices as Ghana, the world’s second-largest producer, signals a firmer stance on farmer remuneration.
•Improved sector confidence, potentially attracting more youth and private investment into cocoa farming
Source – Reuters, ghanaweb, thecocoapost, Cocobod, AFRIQOM Analytics
Free Inputs to Support Farmers
Ghana has reconfirmed its free cocoa fertiliser programme for the 2025/26 crop year. Announced by Finance Minister Dr. Cassiel Ato Forson on August 4, the inputs package includes liquid and granular fertilizers, insecticides, spraying machines, fungicides, and flower inducers. According to President John Dramani Mahama, the initiative reflects the government’s strategy to strengthen cocoa production by providing better access to farm inputs, reducing farmer costs, and improving yields across Ghana’s key cocoa-growing regions. Industry observers note that the reintroduction comes at a time.
Market Outlook
The dual policy of free inputs and higher farm-gate prices could boost Ghana’s cocoa output in the medium term, although the actual impact will depend on weather conditions, disease control, and international price trends. Analysts warn that the cost implications for the government will be significant, particularly if global cocoa prices soften.
For buyers and traders, Ghana’s policy shift may mean stronger competition for beans in the short term, while processors could face tighter margins if farm-gate costs translate into higher procurement prices.
AFRIQOM Insight: The combination of fertiliser subsidies and a substantial price rise is a bold step to revitalise Ghana’s cocoa industry. It could serve as a benchmark for other producing nations balancing farmer welfare with market competitiveness in Africa.
AFRIQOM Market Reporter