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Ghana Cuts Farmgate Cocoa Price, Introduces New Financing Model

The government of Ghana has reduced its farmgate cocoa price for the 2025/26 crop season and unveiled a new financing framework aimed at stabilizing the country’s struggling cocoa sector. The price paid to farmers has been cut to 41,392 Ghana cedis per metric tonne, down from 58,000 cedis, following a sharp decline in international cocoa prices that left Ghanaian beans uncompetitive on the global market, as reported by Reuters.

Finance Minister Cassiel Ato Forson said the adjustment reflects prevailing global market realities and is intended to restore liquidity across the cocoa value chain. The earlier higher price had contributed to unsold stockpiles and delayed payments to farmers, placing financial strain on thousands of producers and buyers.

Alongside the price cut, the government has introduced a new domestic financing model through the Ghana Cocoa Board (COCOBOD). The revised structure will rely on locally issued cocoa bonds, with repayments tied directly to seasonal sales. MarketScreener says this approach is designed to replace the previous syndicated loan system, which had become increasingly difficult to sustain amid market volatility.

Authorities are also preparing legislative reforms to align farmgate prices more closely with international market movements while safeguarding farmers’ income through a guaranteed share of the Free on Board price. The combined measures form part of a broader strategy to restore financial stability, improve transparency, and strengthen Ghana’s long-term competitiveness in the global cocoa industry, Citinewsroom noted.

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