The Ghana Cocoa Board (COCOBOD) has intensified efforts to improve understanding of Ghana’s cocoa sector reforms, engaging farmers and staff in the Oti and Volta regions on new legislation, producer pricing and measures to combat cocoa smuggling.
The engagements, held in Lolobi, Dodi Papase and Jasikan, form part of a nationwide stakeholder education programme launched three weeks ago to explain the implications of the Ghana Cocoa Board Act, 2026 (Act 1182), and the rationale behind the producer price announced for the 2026/2027 cocoa season.
The exercise comes as Ghana implements changes intended to strengthen financial accountability within the cocoa industry, improve returns to farmers and protect cocoa supplies from illegal cross-border trade.
Participants also examined the role of Licensed Buying Companies (LBCs) in ensuring timely purchases and maintaining an efficient domestic cocoa marketing system.
“The Ghana Cocoa Board Act, 2026 (Act 1182), guarantees cocoa farmers a minimum of 70 per cent of the realised gross Free-on-Board value of cocoa, establishing a statutory basis for determining farmers’’
Cocoa Board
New Legislation Reshapes Cocoa Pricing
A major focus of the regional engagements was the Ghana Cocoa Board Act, 2026, which introduces reforms affecting producer pricing, institutional governance, cocoa farm protection and financing arrangements.
Under the new law, farmers are guaranteed at least 70 per cent of the realised gross Free-on-Board (FOB) value of cocoa. The provision links the minimum producer price to the value of exported cocoa, providing a statutory benchmark for determining the amount payable to farmers.
For the 2026/2027 season, the government increased the producer price from GH¢41,392 per metric tonne to GH¢42,400, effective September 25, 2026. The revised rate represents an increase of GH¢1,008 per tonne and translates into GH¢2,650 for a 64-kilogramme bag.
According to COCOBOD, the new price represents 71.18 per cent of the realised gross FOB value, exceeding the minimum threshold established by the legislation. The adjustment followed consultations involving the Ministry of Finance, cocoa farmers, licensed buying companies, hauliers and processors.
The education programme is therefore intended to help farmers understand how the pricing arrangement works and why the government adopted the revised rate for the current season.
Beyond producer pricing, Act 1182 prohibits COCOBOD from undertaking quasi-fiscal activities and introduces a financing framework intended to support greater domestic value addition.
It also strengthens measures to protect cocoa farms against illegal small-scale mining, which threatens agricultural land and the long-term productivity of cocoa-growing communities.
“For the 2026/2027 cocoa season, the producer price stands at GH¢42,400 per tonne, equivalent to GH¢2,650 per 64-kilogramme bag and representing 71.18 per cent of the realised gross FOB value.”
Cocoa Board
The reforms are expected to provide a clearer framework for managing the sector’s finances while improving transparency in the distribution of export earnings.
Smuggling Threatens Regional Cocoa Trade
Cocoa smuggling was another central issue during the engagements, reflecting persistent concerns about the movement of Ghanaian cocoa across borders into neighbouring countries.
The report recorded a decline in estimated smuggled volumes from 7,215. 19 tonnes in the 2020/2021 crop year to 5,656.25 tonnes in 2021/2022, followed by 874.31 tonnes in 2022/2023, 468.75 tonnes in 2023/2024 and 87.06 tonnes in 2024/2025.
The figures highlight the importance of maintaining surveillance and strengthening the cocoa purchasing system, even as recorded volumes declined over the period.
Smuggling can undermine Ghana’s cocoa marketing arrangements by diverting beans away from the domestic purchasing system. When farmers sell outside authorised channels, the country risks losing export earnings, while the movement of unaccounted cocoa can weaken traceability and complicate efforts to monitor the supply chain.
“Ghana recorded 7,128.13 tonnes of cocoa losses attributed to smuggling in the Volta and Oti regions across the five crop years reported in November 2025.”
Cocoa Board
A dependable purchasing presence could reduce the difficulties farmers encounter when seeking buyers and help limit incentives to divert their produce through unauthorised channels.
LBCs and Farmer Welfare
The discussions also placed emphasis on the responsibilities of licensed buyers in sustaining confidence in the cocoa marketing system.
LBCs serve as intermediaries between cocoa farmers and the wider marketing structure, purchasing beans and facilitating their movement through the approved supply chain. Their operational capacity is therefore important to ensuring that farmers can sell their produce without unnecessary delays.
In areas where access to buyers is limited, a more reliable purchasing network could help improve market access and strengthen compliance with authorised trading arrangements. Dedicated buyers could also support better monitoring of cocoa movements and improve the availability of information on purchases.
Alongside the pricing reforms, COCOBOD continues to implement productivity-enhancement programmes, including the provision of free fertiliser, hybrid cocoa seedlings and cocoa disease and pest control interventions. These measures are intended to reduce production costs, improve yields and strengthen farm incomes.
“Free fertiliser, hybrid cocoa seedlings and cocoa disease and pest control interventions form part of the productivity-enhancement measures intended to reduce farmers’ production burden and improve yields.”
Cocoa Board
COCOBOD’s engagement with farmers and staff in the Volta and Oti regions reinforces the importance of communicating policy changes directly to those responsible for producing and purchasing cocoa.
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