Ghana cocoa farmgate price has been reduced by 28 percent for the first time since at least 2020, following a sharp decline in global cocoa prices and mounting arrears owed to farmers.
The announcement forms part of broader reforms within Ghana’s cocoa sector, with the government assuring farmers that outstanding payments will be settled.
Government to Pay Arrears to Cocoa Farmers
The Finance Minister confirmed that Cabinet has directed the Ghana Cocoa Board to immediately pay all affected farmers.
However, questions emerged over how the payment would be financed, given COCOBOD’s well-documented liquidity challenges in recent years.
Speaking on Joy FM’s Top Story, Deputy Finance Minister Thomas Ampem Nyarko revealed that the government will absorb expected losses from cocoa already supplied.
Government to Absorb $150 Million Loss
According to Mr. Nyarko, approximately 50,000 metric tonnes of cocoa beans had already been supplied by farmers before the price reduction.
Because the supply occurred prior to the new Ghana cocoa farmgate price taking effect, farmers will be paid the previous rate of over $5,200 per tonne.
At current market conditions, COCOBOD is projected to incur losses estimated at $150 million, equivalent to roughly GH¢1.6 billion at prevailing exchange rates.
The government has agreed to absorb the full amount, describing it as a necessary fiscal intervention to protect farmers.
The price reduction is expected to generate mixed reactions across Ghana’s cocoa-producing communities.
