In a bold move set to ripple through the global cocoa industry, Ghana on Monday announced a 62.58% increase in the producer price of cocoa, raising the rate paid to farmers from $3,100 to $5,040 per tonne ahead of the 2025–26 season.

The announcement was made by Finance Minister Cassiel Ato Forson during a press briefing in Accra, where he said the adjustment was in line with President John Mahama’s campaign pledge to ensure cocoa farmers receive at least 70% of the Free-On-Board (FOB) value of cocoa exports.

“The cocoa farmer remains a critical pillar of our economy, and this government is committed to ensuring they benefit from the gains we are making,” Forson said.

A Regional and Global Impact

The decision is expected to put economic pressure on Côte d’Ivoire, the world’s leading cocoa producer, which currently pays farmers about $3,900 per tonne (2,200 CFA francs/kg). Ghana typically sets its cocoa prices before Ivory Coast, and this year’s sharp hike could force its West African neighbour to follow suit.

Analysts warn that Ghana’s move, while aimed at farmer welfare, could drive global cocoa prices higher, exacerbating supply chain pressures already strained by climate shocks, ageing farms, and land loss to illegal mining.

The FOB price for cocoa — the benchmark for calculating what farmers receive — has surged to $7,200 per tonne, a sharp jump from past seasons when some contracts were locked in at $2,600/tonne. In 2024–25, farmers received 63.9% of a $4,850 FOB price. The new pricing brings them closer to a fairer share of the value chain, long demanded by activists and producer countries alike.

Fertiliser Programme Reinstated

Forson also announced the return of the government’s free fertiliser distribution programme, including insecticides, fungicides, spraying machines, and flower inducers — part of efforts to improve yield and income.

“This is not just about prices. It’s about productivity and sustainability,” the minister said.

Challenges Remain

While the hike is seen as a win for cocoa farmers, critics have pointed out that past government-set prices often lagged behind global highs. That led some farmers to abandon cocoa farming for informal gold mining, accelerating deforestation and land degradation.

Ghana, the world’s second-largest cocoa producer, and Ivory Coast together supply more than 60% of the world’s cocoa, yet farmers in both countries earn a fraction of chocolate’s final retail value. With growing scrutiny of the cocoa supply chain — from child labour to ecological damage — the push for more equitable earnings is gaining traction.

This latest move by Ghana is likely to shape regional pricing strategies, global cocoa futures, and the broader debate around fair trade and sustainability in one of the world’s most profitable yet inequitable agricultural sectors.