Ghana’s cocoa sector sees first growth in six quarters
Cocoa sub-sector rebounds with 3.4% growth in Q1 2025 as farmers call for higher producer prices and policy reforms.
GHANA – Ghana’s cocoa sector has recorded its first quarterly growth in nearly two years, posting a 3.4% expansion in Q1 2025, according to the Ghana Statistical Service.
This marks a significant turnaround for the sub-sector, which had experienced six consecutive quarters of contraction dating back to mid-2023.
The recovery is part of a broader upswing in the agriculture sector, which grew by 6.6% in Q1 2025, a notable rise from 2.4% recorded in the same quarter of 2024.
Overall, Ghana’s economy expanded by 5.3% during the first quarter, driven by strong gains in fishing (16.4%), ICT (13.1%), and manufacturing (6.6%).
The cocoa sub-sector had faced one of its most severe downturns in recent years. In 2023, growth remained volatile, with Q1 recording -0.1%, a modest recovery to 1.2% in Q2, followed by -0.4% and -1.1% in Q3 and Q4 respectively.
The situation deteriorated sharply in 2024, with quarterly contractions of -20.2%, -26.0%, -26.0%, and -21.4%, due to a combination of climatic, operational, and market challenges.
Despite the recent rebound, the Ghana Cocoa Board has indicated that the country is expected to miss its cocoa production target for the 2024/2025 crop season.
Production is currently at 590,000 metric tonnes, just short of the 610,000-tonne target, with limited time left in the season.
Amid the rebound, cocoa farmers are intensifying calls for a guaranteed payment of at least 70% of the Free-On-Board (FOB) price. They argue that this level of compensation is necessary to reflect their vital role in the global cocoa supply chain and sustain rural livelihoods.
President John Dramani Mahama has pledged to announce a new cocoa producer price in August 2025, raising hopes among producers.
However, the Ghana National Cocoa Farmers Association remains cautious. Its president, Stephenson Anane Boateng, emphasized that farmers seek constitutional compliance on FOB pricing and warned against unilateral projections by government officials.
He also advised caution in the expansion of large-scale commercial cocoa farming projects, noting that without clear long-term planning, such initiatives could marginalize smallholder farmers and disrupt sector balance.
In November 2024, the government raised the producer price of cocoa from GH₵48,000 (US$4662.18) to GH₵49,600 (US$4817.59) per tonne, translating to a 64kg bag price increase from GH₵3,000 (US$291.39) to GH₵3,100 (US$301.10).
Ghana remains the world’s second-largest cocoa producer, with cocoa revenues playing a vital role in the national economy.
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