Government Set to Announce New Cocoa Producer Price Today Amid Currency Uncertainty

Government is expected to announce a revised producer price for cocoa for the upcoming 2025/2026 crop season today, Monday, August 4, ahead of the official season opening on Thursday, August 7, 2025.

The announcement follows the completion of pricing reviews by technical committees and broad consultations with key stakeholders in the cocoa value chain. While expectations are high for a notable increase in dollar terms, concerns remain over the real impact on farmers’ incomes due to the Ghanaian cedi’s recent sharp appreciation against the U.S. dollar.

Currently, the producer price stands at GH¢3,100 per 64kg bag, or GH¢49,600 per tonne. The government has hinted at an upward adjustment in line with recent bullish trends on the international market, where cocoa was trading at around $7,555 per tonne as of Sunday night.

Strong Global Prices, Muted Local Gains?

Despite the global price surge, cocoa farmers may not fully benefit from the windfall due to foreign exchange dynamics. COCOBOD Chief Executive Dr. Randy Abbey acknowledged the challenges posed by the cedi’s strengthening some days ago.

“What we are seeing now is a situation where global prices are high, and that would normally translate into higher incomes for our farmers. But with the cedi appreciating sharply, the gains could be reduced when translated into Ghana cedi,” Dr. Abbey explained.

This sentiment underscores broader market apprehension about how exchange rate movements could dilute the expected benefits of a price hike, especially at a time when the government claims to be heavily subsidising the sector.

Mahama Reaffirms 70% World Price Commitment

President John Dramani Mahama, in remarks made last month, reaffirmed his government’s pledge to ensure that cocoa farmers receive at least 70% of the world market price, a policy aimed at realigning farmer remuneration with international benchmarks.

“This policy is aimed at restoring dignity and fairness to the farmers who are the backbone of Ghana’s agricultural economy,” the President stated.

His comments come at a time when Ghana’s cocoa sector is experiencing both opportunity and uncertainty opportunity in the form of historic global prices, and uncertainty from a fast-appreciating currency and rising input costs.

Industry on Edge as Announcement Nears

As the industry awaits the official announcement, key stakeholders from farmer cooperatives to cocoa buyers are closely watching how the government balances global market gains with domestic economic realities.

Analysts say the final pricing decision will serve as a litmus test for the government’s commitment to farmer welfare, as well as its ability to manage competing fiscal and economic pressures.

For now, cocoa farmers are hopeful but cautious, as they look to today’s pricing announcement to determine whether their toil on the farm will translate into real income gains in a rapidly shifting macroeconomic landscape.

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