Dr. Randy Abbey, Chief Executive of the Ghana Cocoa Board (COCOBOD), has provided crucial insights into the complexities of cocoa pricing, emphasizing the government’s commitment to ensuring Ghanaian cocoa farmers receive a significant share of the Free On Board (FOB) value.
His recent educational efforts on Ekosii Sen radio show on Asempa fm, aim to foster a deeper appreciation among Ghanaians for the current administration’s policy of allocating 70% of the FOB price directly to farmers.
“Of the effort, 70% is what the NDC promised in its manifesto. That is what President Mahama promised recently when he went out there. He met with the farmers and told them 70%, and the 70% we know is the highest in that bracket of 62 to 70. So, you will see the farmers’ share has moved from $3,100 to $5,040, an increase of almost $2,000.” He noted.
Dr. Abbey’s explanation comes amidst discussions surrounding the economics of cocoa production and its impact on the national currency. He underscored that while global cocoa prices might appear substantial in dollar terms, a strong appreciation of the Ghana Cedi could potentially dilute the perceived benefits for farmers when converted into local currency. This perspective highlights the delicate balance between international commodity prices, exchange rates, and farmer incomes.
Recent developments confirm the government’s proactive stance. The Producer Price Review Committee (PPRC), chaired by the Minister for Finance, Dr. Cassiel Ato Forson, has announced a significant increase in the producer price of cocoa for the 2025/2026 season, effective August 7, 2025. The new price, raised from US$3,100 to US$5,040 per tonne, represents a 62.58% increase in dollar terms and aligns with President John Mahama’s promise to pay cocoa farmers 70% of the gross FOB value, which stands at US$7,200 per tonne.
This move is further supported by the reintroduction of a free cocoa fertilizer program, providing farmers with various inputs including liquid and granular fertilizers, insecticides, spraying machines, fungicides, and flower inducers. Additionally, a Tertiary Education Scholarship Scheme for children of cocoa farmers is set to be implemented, underscoring a holistic approach to supporting the cocoa sector and its stakeholders.
Dr. Abbey’s insights serve to educate the public on the intricate mechanisms of cocoa pricing and the government’s efforts to stabilize and improve the livelihoods of cocoa farmers, even in the face of currency fluctuations.