By Daniel Bampoe
The Cocoa sector is on the verge of a confrontation as farmers across the country threaten to reject the newly announced producer price for the 2025/2026 crop season, accusing the government of breaking campaign promises and manipulating figures.
On Monday, August 4, 2025, Finance Minister Cassiel Ato Forson announced that the Producer Price Review Committee (PPRC) had set the new producer price at $5,040 per metric tonne, effective August 7.
Converted at an average exchange rate of GHC10.25 to the US dollar, the figure translates to GHC51,660 per tonne or GHC3,228.75 per 64-kg bag.
The minister said the increase represents 70% of the Free-on-Board (FOB) price of $7,200, fulfilling President John Mahama’s promise to cocoa farmers during the 2024 election campaign.
The government hailed the announcement as a 62.58% increase in dollar terms over the previous season’s price of $3,100 per tonne.
But cocoa farmers say the reality on the ground tells a very different story.
Farmers Cry Foul Over “Deceptive Math”
Speaking on national television, Issifu Isaka, spokesperson for the Cocoa Farmers Cooperative Union, rejected the price outright, calling it a breach of trust.
“This $5,040 per tonne doesn’t represent 70% of the international price,” he said. “We’ve done our calculations, spoken with traders, and checked the average July market price — it’s around $8,000 per tonne. Seventy percent of that is not $5,040.”
Farmers also questioned the whereabouts of the $400 per tonne Living Income Differential (LID) that Ghana and Côte d’Ivoire have been receiving from buyers since 2019.
“Where is that money? Companies are still paying it. Why is it not reflected in our price?” Isaka demanded.
Campaign Promises vs. Reality
During the 2024 elections, then-opposition leader John Mahama toured cocoa-growing regions, including the Western North and Bono regions, pledging that farmers would receive at least 70% of the world market price.
In many campaign stops, he also promised a GHC6,000 per bag price if elected.
Farmers now say the NDC government’s figures are misleading. “They promised GHC6,000 per bag, but we are getting just GHC3,228.
That’s only GHC128.75 more than what the NPP gave us,” a farmer from Sefwi-Wiawso told this reporter. “This is not change. This is a scam.”
Economic Context
Under the previous NPP administration, the producer price was pegged at $3,100 per tonne, representing about 63.9% of the FOB price at the time.
The NDC’s new figure may appear larger in dollar terms, but in cedi terms, the gain is marginal — GHC49,600 per tonne under the NPP compared to GHC51,660 now.
Economists say the weak cedi and inflation have eroded the purchasing power of farmers, making the headline increase far less impactful in real terms.
“The government may have hit its 70% target on paper, but farmers are right to point out that what matters is how much they can buy with their earnings,” one agricultural economist noted.
Threat of Rejection
Farmer unions have vowed to resist the new pricing unless the government returns to the table.
“We will reject this price entirely. We cannot be fooled anymore,” Isaka declared. The unions are considering coordinated protests and have called for transparency in how the FOB value is determined.
Civil society groups are also demanding that the Ministry of Finance and COCOBOD publish detailed calculations, including the treatment of the LID, to prove that the announced figure truly reflects the promised share of the international market price.
What Lies Ahead
The dispute threatens to strain relations between the government and the nearly 800,000 cocoa farmers who form the backbone of the economy.
With the 2025/2026 cocoa season opening in just days, any coordinated rejection of the new price could disrupt the supply chain, delay purchases, and potentially affect Ghana’s standing in the global cocoa market.
