Ghana cuts cocoa farmgate price, introduces cocoa bonds financing model
Government launches reforms to restore cocoa competitiveness, clear farmer arrears, and stabilize Ghana’s struggling cocoa sector.
GHANA – Ghana has reduced its farmgate cocoa price and introduced a new domestic financing model to revive demand, support farmers, and stabilize its struggling cocoa sector following a sharp drop in global prices.
Finance Minister Cassiel Ato Forson announced that the new farmgate price will be set at 41,392 cedis (US$3,580) per metric ton for the remainder of the 2025/2026 crop season.
The previous price, set by regulator Ghana Cocoa Board (COCOBOD), stood at 58,000 cedis (US$5,300) per ton and had made Ghanaian cocoa less competitive on the global market.
“The current situation is largely driven by the unwillingness of buyers to purchase Ghana’s cocoa because it has become uncompetitive and very expensive,” Forson said during a press briefing.
The price adjustment comes as global cocoa prices have fallen sharply to around US$4,000 per metric ton, nearly half the levels recorded a year earlier, weakening demand and leaving significant quantities of unsold beans.
Payment delays have left thousands of farmers struggling to meet basic needs, including food, school fees, and farm maintenance.
Forson said the government has directed COCOBOD to begin immediate repayment of all outstanding arrears owed to farmers. “Cabinet has directed market regulator COCOBOD to begin immediate repayment of all affected cocoa farmers,” he said, emphasizing the urgency of restoring confidence in the sector.
To prevent future payment delays, the government will introduce a new financing model based on domestic cocoa bonds issued by COCOBOD. The bonds will be repaid using proceeds from cocoa sales within the same crop year, reducing reliance on external borrowing.
In addition, the government plans to present legislation to Parliament linking farmgate prices directly to international market rates while guaranteeing farmers at least 70% of the gross Free on Board (FOB) price. This measure is intended to ensure fair and predictable earnings for farmers.
Cabinet has also approved plans for the conversion of approximately GH¢5 billion ($455 million) in cocoa-related debt owed to the Ministry of Finance and the Bank of Ghana into structured financial instruments, easing COCOBOD’s financial burden.
To support infrastructure development in cocoa-growing regions, the government has secured a US$500 million facility from the World Bank to fund agricultural road construction nationwide.
As part of broader reforms, a new COCOBOD Bill will prohibit the regulator from engaging in quasi-fiscal expenditures and non-core activities, including road construction, to strengthen accountability and financial discipline.
Forson also said Ghana plans to increase domestic cocoa processing from the current 30%–40% to at least 50% in the 2026/2027 crop season and will revive the state-owned Cocoa Processing Company to support the goal.
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