On 3rd October 2025, the government increased the cocoa producer price to GH¢3,625 per 64 kg bag (GH¢58,000 per tonne). This sounded disappointing for farmers but good for the government to manage its recklessly promised GH¢6,000-per-bag promise, but here’s the catch.

The Ghana cedi has strengthened from around GH¢15/USD (2024/25) to about GH¢11/USD. Since cocoa is sold in US dollars internationally, the same cedi price now translates to a much higher dollar price for the foreign buyers.

To make matters worse, no forward sales or hedging were done. COCOBOD didn’t lock in exports at prevailing high prices to guarantee dollar revenue. As a result, international buyers such as Olam found Ghana’s cocoa expensive and reduced their purchases.

The consequence? Very Simple! COCOBOD depends on export dollars to pay Licensed Buying Companies (LBCs) in Cedis, who then pay farmers. With sales slowing due to high dollar prices, cash flow is disrupted, and payments to farmers are delayed.

What Do We Hear? The Lessons Or The Propaganda
The lesson here is that it’s not the farm-gate price (producer price) or global cocoa prices alone that determine the purchase and marketing of our cocoa. The problem is the combination of:
• Increasing producer price in cedis
• A strengthened/appreciated Cedi, raising dollar-denominated costs for buyers
• Lack of forward sales/hedging to have locked in export revenue at the time prices were high.

Currently, cocoa prices are tumbling; producer prices remain unchanged, and the cedi remains strong. This is why Ghana’s cocoa appears “expensive” on the international market and why COCOBOD is struggling to pay farmers.

Given that the 2025/26 crop season has been severely mismanaged, the best course is to learn the lessons and stop blaming the previous administration, because these market dynamics were always there; they were simply not managed.

My Humble Suggestions
I suggest that COCOBOD and government should:

1. Communicate Transparently: Issue clear statements to buyers and farmers explaining the foreign exchange and export market situation and actions being taken. Transparency helps maintain confidence and prevents panic or further delays in purchases.
2. Make Ghana cocoa competitive in dollars (even temporarily)
3. ⁠Tap into relationships with existing buyers and consider offering discounts to secure sales of unsold cocoa and generate quick revenue.
4. ⁠Ensure farmers are paid promptly to maintain their interest in cocoa farming.
5. ⁠Consult/engage CMC’s experienced traders to help plan forward contracts/hedges to avoid similar crises in the future.
6. ⁠Note that complains and blames don’t solve problems.

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The writer Joseph Cudjoe is the former Investment Manager of the Ghana Cocoa Board, Former MP for Effia Constituency, and Former Minister for Public Enterprises