President John Mahama has unveiled plans for an automatic cocoa pricing system that will guarantee farmers 70 per cent of the international market price, adjusted at prevailing exchange rates.

Speaking at the Presidential Dialogue with the Private Sector in Accra on Monday, the President said reforms are needed to address the ongoing challenges in Ghana’s cocoa sector and ensure sustainability across the value chain.

“Reforms will include, amongst others, domestic funding for cocoa purchasing, expanded involvement of local licensed buying companies, including the revamp of the Produce Buying Company, expansion of value addition and processing of cocoa and other tree crops locally, and an automatic price mechanism that pays the farmer 70 percent of the international market price at prevailing exchange rates,” he explained.

The proposed system will remove the reliance on periodic administrative price adjustments, which often lag behind global market fluctuations.

Farmers will now automatically receive a fixed share of the prevailing world market price, improving transparency and linking local earnings directly to international trends.

In addition to pricing reforms, the government plans to fund cocoa purchases domestically, reducing dependence on external financing.

Licensed buying companies will have a larger role, and the Produce Buying Company will be restructured to enhance efficiency.

The Cocoa Processing Company will also be upgraded to boost local bean processing, thereby supporting broader value-addition initiatives.

President Mahama acknowledged that recent global price volatility forced emergency measures, including a downward adjustment of domestic cocoa prices, which he described as necessary though difficult.

He emphasised that moving Ghana beyond raw commodity exports toward value-added production is essential for both agriculture and extractive industries, particularly as the cocoa sector faces production declines and financial pressures at COCOBOD.