Keypoints:
- Producer price aligned to $4,200 global benchmark
- Domestic cocoa bonds to fund purchases
- CPC revamp and 50 percent local processing target
GHANA has reduced its cocoa producer price to reflect a global benchmark of $4,200 per metric ton, as Finance Minister Cassiel Ato Forson unveiled an extensive reform package aimed at restoring stability to the country’s cocoa sector.
The announcement, made on Thursday, February 12, 2026, also included plans to introduce domestic cocoa bonds, restructure legacy debt and revitalise the state-owned cocoa processor under sweeping changes approved by Cabinet.
Addressing the media in Accra, Forson said the Producer Price Review Committee (PPRC) had realigned Ghana’s farmgate cocoa price with prevailing international market conditions following a sharp global downturn, while structural reforms at the Ghana Cocoa Board (Cocobod) would safeguard farmer interests and strengthen long-term sustainability.
Price cut reflects global market realities
World cocoa prices have declined significantly from highs around $7,200 per metric ton to approximately $4,100–$4,200 per metric ton, according to the finance minister. The fall has rendered Ghana’s cocoa uncompetitive and created liquidity constraints within Cocobod.
To mitigate the impact on farmers, the PPRC recommended that producers receive 90 percent of the achieved gross FOB price of $4,200 per ton.
Effective immediately, the new producer price translates to 41,392 Ghana cedis per metric ton (about $4,200) and 2,587 cedis per bag (about $262) for the remainder of the 2025–2026 crop season.
‘This measure reflects the reality of the world market price, ensures immediate liquidity for expedited payment of farmers and guarantees the sustainability of our cocoa sector,’ Forson said.
Cocoa bonds to anchor new financing model
A key element of the reform package is the introduction of domestic ‘cocoa bonds’ from the 2026–2027 crop season.
Forson said the previous financing arrangement — introduced after the collapse of the traditional syndicated loan structure — had proven fragile because it relied heavily on buyer pre-financing. ‘The previous financing model has proven not to be sustainable,’ he said. ‘It was entirely dependent on buyers’ willingness to bear the financing cost and pre-finance cocoa purchases.’
The new cocoa bonds will be issued domestically on Cocobod’s balance sheet to raise a revolving fund dedicated to purchasing cocoa beans within each crop year. Proceeds from cocoa exports will be used to retire the bonds within the same season.
The minister said the model would strengthen liquidity management, reduce reliance on external counterparties and restore operational control to Cocobod. Indigenous licensed buying companies, including the state-owned Produce Buying Company, are also expected to regain stronger footing under the revised structure.
CPC revamp and local processing expansion
Cabinet has directed that the state-owned Cocoa Processing Company (CPC) be revitalised to take a leading role in domestic processing.
Forson disclosed that he and the minister responsible for trade and industry had met domestic processors, including private sector operators, who indicated capacity to process more than 50 percent of Ghana’s cocoa output going forward.
With immediate effect, the remaining beans for the 2025–2026 crop season will be prioritised for domestic processing. From the 2026–2027 season onward, at least 50 percent of all cocoa beans must be processed locally.
The CPC revamp is expected to strengthen Ghana’s value-addition strategy, support industrial activity and create employment, reducing historical dependence on raw bean exports.
Debt restructuring and oversight measures
To stabilise Cocobod’s balance sheet, the finance ministry will seek parliamentary approval to convert approximately 5.8bn cedis (around $580 million) in legacy debt onto the books of the Ministry of Finance and the Bank of Ghana.
Additionally, 4.35bn cedis (roughly $435 million) in cocoa road liabilities will be transferred to the Ministry of Roads and Highways and the finance ministry following a rationalisation exercise that significantly reduced outstanding exposure.
Cabinet has further directed the attorney-general to commission concurrent forensic audits and criminal investigations into Cocobod’s activities over the past eight years.
Automatic price adjustment to protect farmers
Forson acknowledged that cocoa farmers have not consistently benefited during previous periods of elevated global prices and currency depreciation.
‘When the world market price moved up in the past, unfortunately the cocoa farmer did not benefit,’ he said. ‘Never again should the cocoa farmer be short-changed.’
He said a new Cocoa Board Bill to be presented to Parliament will mandate automatic producer price adjustments linked to global market movements and exchange rate fluctuations, guaranteeing farmers a minimum of 70 percent of gross FOB going forward.
The government maintains that the combined measures — price realignment, cocoa bonds, CPC revitalisation, debt restructuring and expanded local processing — represent a decisive shift toward a more resilient and transparent cocoa sector.
