The Minister for Finance, Dr. Cassiel Ato Forson, has announced a reduction in the cocoa producer price and a raft of reforms aimed at restoring financial stability and long-term sustainability to Ghana’s cocoa sector.
Speaking at the Government Accountability Series on Thursday, February 12, 2026, Dr. Forson said the decision followed an emergency Cabinet meeting held on February 11 to address what he described as “historical and systemic problems” confronting the sector.
According to him, the 2025–2026 cocoa season opened in August 2025 with a producer price of GH¢51,660 per tonne, based on 70 per cent of the gross Free on Board (FOB) price of US$7,200 per tonne.
However, he noted that Côte d’Ivoire later announced a price 20 per cent higher than Ghana’s, raising fears of cocoa smuggling.
“This decision, by the Ivorians, coupled with movement in the exchange rate resulted in a significant difference in the producer price,” he said.
To stem the situation, the Producer Price Review Committee (PPRC) increased Ghana’s farmgate price to GH¢58,000 per tonne in October 2025.
Dr. Forson said that from late 2025, global cocoa prices began to decline, falling below US$6,400 per tonne — the estimated cost of moving cocoa from farms to ports — making Ghana’s beans uncompetitive.
“The current situation is largely driven by the unwillingness of buyers to purchase Ghana’s cocoa because it has become uncompetitive and very expensive,” he explained.
The Finance Minister attributed the crisis partly to liquidity constraints and a weak financing model adopted after the collapse of the traditional syndicated loan system.
He revealed that Cocobod’s financial position deteriorated significantly between 2022 and 2024, leading to defaults, delayed loans, and massive losses from rollover contracts.
In the 2023/2024 season, Cocobod projected production of 800,000 tonnes but achieved only 432,145 tonnes, a shortfall of over 45 per cent.
“This resulted in a huge rollover contract of about 333,767 tonnes… and a loss of over US$1 billion,” he stated.
Dr. Forson also disclosed that Cocobod defaulted on a US$70 million bridge loan from the Ministry of Finance in 2024, worsening its debt burden.
To address the crisis, Cabinet has approved wide-ranging reforms, including immediate payment of arrears owed to cocoa farmers, the introduction of a new Cocobod Bill to guarantee at least 70% of gross FOB to farmers, the implementation of an automatic producer price adjustment mechanism, and a new financing model based on domestic cocoa bonds.
The reforms also include the revival of indigenous licensed buying companies, the revamping of the Produce Buying Company (PBC), and the revival of the state-owned Cocoa Processing Company (CPC).
Dr. Forson said that from the 2026–2027 season, at least 50 per cent of cocoa beans will be processed locally.
“Beginning from 2026–2027 crop season, a minimum of 50% of all cocoa beans should be processed locally,” he said.
Cabinet has also directed the Ministry of Finance to seek parliamentary approval to absorb Cocobod’s legacy debt of about GH¢5.8 billion, including GH¢3.7 billion owed to the Ministry of Finance and GH¢1.38 billion owed to the Bank of Ghana.
According to the Minister, the move will “restore positive equity and boost confidence” in Cocobod.
In addition, GH¢4.35 billion in cocoa road liabilities will be transferred to the Ministry of Roads and Highways and the Ministry of Finance.
To ensure accountability, Cabinet has ordered a forensic audit and criminal investigation into Cocobod’s operations over the past eight years.
“Cabinet has directed the office of the Attorney General to commission concurrent forensic audit and criminal investigation,” Dr. Forson announced.
He added that wasteful spending and non-core expenditures would be curtailed under the new Cocobod Bill.
Dr. Forson said falling global prices had forced government to review the producer price for the remainder of the season.
The world market price, he noted, has declined from about US$7,200 to US$4,100 per tonne.
Following a meeting of the Producer Price Review Committee, farmers will now be paid 90 per cent of the achieved gross FOB price of US$4,200 per tonne.
“As a result… the new producer price for the remainder of the 2025–2026 crop season will now be GH¢41,392 per tonne and GH¢2,587 per bag,” he announced.
The new price takes effect from Thursday, February 12, 2026.
The Finance Minister praised cocoa farmers for their patience and sacrifice.
“Government wishes to convey its sincere appreciation to the Ghanaian cocoa farmer and all stakeholders for their forbearance,” he said.
He expressed confidence that the reforms would transform the sector and protect farmers’ livelihoods.
“We strongly believe this will transform the industry,” Dr. Ato Forson added.
