Ghana Raises Cocoa Prices by 62%, Sets New Rate at $5,040 Per Tonne

By: Chioma Madonna Ndukwu

On August 4, 2025, Ghana announced a major hike in the producer price of cocoa, increasing it by 62.58% from $3,100 to $5,040 per tonne, ahead of the 2025-26 season. This move is expected to impact global cocoa prices and challenge competing producers like the Ivory Coast.

The price adjustment was made in response to the government’s commitment to improving the economic standing of cocoa farmers, a key segment of Ghana’s economy. Finance Minister Cassiel Ato Forson emphasized that this increase aligns with the administration’s promise to ensure farmers benefit more from the country’s export earnings.

As the world’s second-largest cocoa producer, Ghana sets its prices ahead of the Ivory Coast, which currently pays farmers around $3,900 per tonne. The new price increase is in line with President John Mahama’s campaign pledge to raise the farmers’ share of export earnings to 70% of the cocoa’s Free-On-Board (FOB) value. The FOB price has increased significantly, currently standing at $7,200 per tonne.

In addition to the price hike, the government is reinstating its free fertiliser program, which includes distributing various farming inputs to help improve cocoa yields and farmers’ incomes. Despite these efforts, critics argue that Ghana’s price controls have not kept pace with global market highs, and some farmers have turned to informal mining, selling land to gold miners, which has led to environmental concerns and reduced cocoa production.