BY Daniel Bampoe
Pressure is mounting on the National Democratic Congress government to immediately revise the cocoa producer price for the 2025/26 season in order to cushion farmers against the rapid depreciation of the cedi.
Former Public Affairs Manager of COCOBOD, Fifi Boafo, has warned that the current pricing structure fails to reflect prevailing economic realities and risks worsening smuggling and farmer hardship.
Background
Last year, under the Akufo-Addo led NPP administration, the government adjusted the cocoa producer price upward just a month after the official announcement.
In October 2024, the price was increased from GH¢3,000 to GH¢3,100 per bag following sharp depreciation in the local currency.
That move, industry observers said, set a precedent for flexible adjustments to protect farmers’ incomes.
Fifi Boafo believes the current administration, led by Finance Minister Cassiel Ato Forson, must follow a similar path.
“It is crucial for the NDC government to act now by increasing the producer price for the 2025/26 season to support our farmers,” he urged.
The Pricing Controversy
On August 7, 2025, the government announced a new cocoa producer price of $5,040 per tonne, pegged at an exchange rate of GH¢10.25 to the US dollar.
But critics say this figure was unrealistic, since it was tied to the exchange rate of a single day rather than reflecting long-term currency projections.
Since then, the cedi has depreciated further, trading at over GH¢12 to the dollar as of September 9, and expected to average GH¢13 over the course of the cocoa year. This means that farmers are effectively losing value on their produce.
Fifi Boafo estimates that, based on current exchange rates, farmers should be receiving a minimum of GH¢3,780 per bag. Instead, they are taking home just GH¢3,228, an increase of only GH¢128 over last season’s rate.
Broken Promises and Farmer Frustration
The situation has been further aggravated by an earlier campaign promise by the NDC to raise the producer price to GH¢6,000 per bag – a pledge that remains unfulfilled.
The smallholder farmers, who form the backbone of Ghana’s cocoa industry, say they feel betrayed by the widening gap between government pronouncements and the reality on the ground.
“The modest increase announced is simply untenable,” Boafo stated, stressing that the livelihoods of farmers are being undermined by policy inaction.
Risks of Inaction
Industry stakeholders warn that failure to review the producer price will have dire consequences.
Cocoa smuggling across Ghana’s borders could surge as farmers seek better returns in neighbouring countries.
At the same time, reduced earnings threaten to push farmers deeper into poverty, jeopardizing food security and household welfare.
Fifi Boafo insists that swift intervention is needed to restore fairness and confidence in the sector.
“To halt smuggling, ensure financial stability, and improve the welfare of our cocoa farmers, it is imperative for the government to act decisively,” he argued.
Cocoa’s Central Role
Cocoa remains the most important cash crop, accounting for a significant share of export revenue and serving as the livelihood for nearly a million households.
Any failure to adjust prices in line with economic conditions, experts say, risks destabilizing an industry that has sustained the country for decades.
For now, the question remains whether government will bow to pressure and revise the announced prices, or risk eroding the trust of the very farmers whose sweat continues to fuel the national economy.
