Cocoa clerks, farmers warn of 'business collapse' amid government price cuts

Some cocoa clerks and farmers in the Upper West Akyem Municipality of the Eastern Region have raised concerns over the recent reduction in the government’s cocoa prices.

According to a report by adomfmonline.com, on February 24, 2026, clerks revealed that delays in the release of government funds have forced them to borrow money from banks to procure cocoa beans.

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“Having purchased some of the beans at the old prices, it will be difficult to absorb the difference and repay our loans under the new pricing regime,” some clerks said.

The report further noted that tensions have reportedly risen in some communities, with farmers insisting they will not sell their produce at the current price.

The clerks have appealed to the government to intervene, warning that without urgent measures, many businesses and households could collapse.

The government recently reduced the producer price of cocoa to GH¢41,392 per tonne and GH¢2,587 per bag for the remainder of the 2025/2026 crop season, citing a sharp fall in global market prices and mounting liquidity pressures within the sector.

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At a press conference in Accra on Thursday, February 12, 2026, finance minister Dr Cassiel Ato Forson said the adjustment was necessary to reflect current international price realities while protecting farmers’ incomes as much as possible.

He explained that the 2025/2026 cocoa season began in August 2025 with a producer price of GH¢51,660 per tonne calculated at 70% of a gross free-on-board price of $7,200 per tonne, using an exchange rate of 10.25 cedis to the dollar.

Following Côte d’Ivoire’s announcement of a higher producer price in October 2025 and movements in the exchange rate, Ghana revised its farm gate price upwards to GH¢58,000 per tonne (equivalent to GH¢3,625 per bag) to curb the risk of smuggling.

The clerks say the challenges intensified around November 2025 when delays in government fund releases made it extremely difficult to raise capital to purchase cocoa from farmers.

JKB/VPO

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