Ghana has announced a new producer price of $5,040 per tonne of cocoa for the 2025/26 crop season, a significant 62.6% increase from the previous $3,100 per tonne. But while the world market is offering record highs, local cocoa farmers will see only a 4.2% bump in earnings when measured in Ghana cedis, largely due to the local currency’s recent strength.
Effective August 7, the new rate will pay farmers GHS3,228.75 per 64kg bag, up from the current GHS3,100. The GHS128.75 increase, though welcomed in some circles, has sparked mixed feelings across cocoa-growing communities. Many were expecting a bigger payday, especially given the scale of the jump in global prices.
The reason for the mismatch lies in the exchange rate. Over the past few months, the Ghana cedi has posted strong gains against the dollar. And while a stable or appreciating currency is often seen as a macroeconomic positive, it also means export earnings, typically paid in dollars, now yield fewer cedis. In practical terms, this blunts the full impact of the dollar rise on local payouts.
This development aligns with earlier projections by the High Street Journal, which had noted that a stronger cedi could limit how much of the global cocoa windfall farmers actually feel. It was anticipated that even as Ghana’s cocoa fetched higher prices internationally, the local gains could be far more muted unless exchange rate dynamics shifted in farmers’ favour. That scenario is now playing out.
Had the cedi not appreciated as strongly, had it remained at levels seen in the early months of the year, the $5,040 price could have translated into roughly GHS3,600 per bag, rather than the announced GHS3,228. The gap represents real income left on the table, at least from the perspective of the cocoa farmer.
Still, there’s a potential silver lining. If the cedi’s strength continues and translates into cheaper imported inputs, such as fertilisers, chemicals, and farming equipment, it could lower the cost of production for farmers. In that sense, what is lost in direct price gains might be recovered somewhat through cost savings.
That cost relief may also be amplified by renewed state support. The government has announced the reintroduction of the free cocoa fertiliser programme beginning this crop year. Farmers are expected to benefit from the free supply of fertilisers, both liquid and granular, along with insecticides, fungicides, spraying machines, and flower inducers.
These interventions may ease some of the burden, especially for smallholder farmers navigating tight margins. But the central point remains: while Ghana is clearly earning more for its cocoa on the world market, the actual returns to farmers in local currency are being narrowed by the very macroeconomic gains meant to stabilize the broader economy.
