Ghana cuts farmgate cocoa price, introduces new financing model

Ghana announced a reduction in its farmgate cocoa price as part of broader reforms aimed at aligning domestic prices with prevailing international market conditions. The new producer price was set at GHS41,392 per tonne, down from GHS58,000 per tonne, following a sharp decline in global cocoa prices and weaker demand. The government noted that maintaining the previous price had created challenges for buyers and contributed to payment delays across the sector. Alongside the price adjustment, authorities introduced a new financing framework based on domestic cocoa bonds, with repayments linked to cocoa sales proceeds during the crop year. The government also announced plans to introduce legislation that would tie future producer prices more closely to international market movements while maintaining the objective of providing farmers with at least 70 percent of the Free On Board value. In addition, efforts are underway to increase local cocoa processing and strengthen value addition within Ghana’s cocoa industry.