GH₵400 Cocoa Price Increment: Better Offer for Farmers or Still Inadequate?

Ghana, the world’s second-largest cocoa producer, has once again adjusted its farmgate cocoa price, sparking fresh debate about whether government action is truly supporting the backbone of its lucrative industry, the farmers.

On 2 October 2025, Finance Minister Dr Cassiel Ato Forson announced a GH₵400 increase per 64kg bag, raising the price from GH₵3,228.75 to GH₵3,625.

This marks the second upward adjustment within three months, following a 62.58% increase in August 2025. But is this new offer enough, or are farmers still receiving less than they deserve?

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The Numbers: What Has Changed?

October 2025 Adjustment

The Producer Price Review Committee (PPRC), chaired by the Finance Minister, approved the following effective 3 October 2025:

• GH₵3,625 per 64kg bag (up from GH₵3,228.75)

• GH₵58,000 per tonne (up from GH₵51,660)

This represents a 12.27% increase over the August adjustment.

August 2025 Hike

In August, prices had already risen significantly:

• From GH₵3,100 to GH₵3,228.75 per bag

• From US$3,100 to US$5,040 per tonne

• A 62.58% year-on-year increase, pegged at 70% of the average Gross FOB (Free on Board) price of US$7,200 per tonne.

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Historical Context

In the 2024/25 season, farmers received GH₵3,000 per bag (GH₵48,000 per tonne). From that baseline, the current price marks a 20.83% increase in local currency terms.

Why the Increases?

Several factors explain these adjustments:

1. Global Cocoa Market Volatility

Dry weather and reduced harvests in Ghana and Côte d’Ivoire pushed futures above US$10,000 per tonne in February 2025. Prices later eased to US$8,100 to US$8,300, still far above historical levels.

2. Regional Competition

Côte d’Ivoire recently raised its farmgate price by 27% to 2,800 CFA francs (about US$5) per kilogram. To prevent smuggling across porous borders, Ghana must remain competitive.

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3. Cedi Performance

The Ghana Cedi strengthened by around 42%, influencing price-setting. Government claims farmers were subsidised by GH₵1,114 per bag earlier in 2025 when the Cedi’s strength outpaced farmgate adjustments.

4. Supply Deficit

Global supply has lagged behind demand, creating a large deficit. Ghana has targeted 650,000 tonnes for 2025/26, but this depends heavily on farmer incentives and inputs.

The Farmer’s Perspective: Is It Enough?

Concerns of Inadequacy

• Rising costs for labour, transport, and equipment continue to erode income.

• Critics argue the 70% FOB formula leaves farmers underpaid while COCOBOD retains wide margins.

• Farmers complain of a persistent gap between international prices and their earnings.

• Delayed payments worsen financial strain.

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Reasons for Optimism

• A farmer producing 10 bags now earns GH₵36,250 compared with GH₵30,000 previously, a difference of GH₵6,250.

• Free inputs including fertilisers, insecticides, and spraying machines help reduce costs.

• New support schemes such as scholarships for farmers’ children and infrastructure upgrades add non-monetary benefits.

• Fixed farmgate pricing shields farmers from market volatility and provides certainty.

The Broader Context

Inflation and Costs of Living

Higher cocoa prices mean little if living expenses and farm inputs rise faster. Purchasing power, not just nominal income, determines real benefit.

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Production Challenges

Structural threats remain, such as ageing cocoa trees, climate change, pests, and illegal mining that continue to weaken yields. Price hikes alone cannot address these.

Export Revenue

While higher prices may boost output and foreign earnings, COCOBOD faces tighter margins, raising concerns about funding for support services.

Regional Comparison

Côte d’Ivoire’s GH₵ equivalent stands slightly above Ghana’s at about GH₵320 per 64kg bag compared to Ghana’s GH₵289. The narrow gap reduces but does not eliminate the risk of smuggling.

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Conclusion: Progress, But Work Remains

The government’s price adjustments of 62.58% in August and 12.27% in October mark significant improvements and demonstrate responsiveness to farmer concerns. Free inputs, scholarships, and subsidies further enhance the package.

Yet questions remain. Compared with previous years, farmers are better off. But relative to international prices and rising costs, many argue the increases are still inadequate. Regional competition also pressures Ghana to remain competitive while ensuring farmer loyalty.

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For Ghana’s cocoa sector to thrive, pricing must be coupled with productivity improvements, transparency, youth engagement, and investment in sustainability. The GH₵400 increment is a step forward, but whether it delivers long-term prosperity for farmers depends on consistent reforms and genuine partnerships with those who sustain Ghana’s cocoa reputation.