Ghana raises cocoa farmer payouts for 2026-27 as global futures recover

Ghana is increasing the price paid to cocoa farmers to 42,400 cedis a ton for the upcoming season starting on Friday. This marks a 2.4% rise from the 41,392 cedis rate paid since February, according to Randy Abbey, chief executive officer of the Ghana Cocoa Board. The adjustment follows a rebound in international cocoa futures, which have nearly doubled to trade around $5,600 per ton after dropping to their lowest level this year in February due to weak global demand.

Market Impact

This price change creates a gap with neighboring Ivory Coast, the world's top cocoa producer, which kept its farmgate price unchanged earlier this month at $2,084 a ton. Industry observers note this difference could lead farmers in Ivory Coast to smuggle beans across the border into Ghana for better pay, potentially disrupting international market flows and keeping global prices high. Ghana's new rate gives farmers 71.8% of the free-on-board export value, meeting the country's goal of sharing at least 70% of export earnings with growers.

Production Outlook

West Africa supplies more than half of the world's cocoa, but the upcoming 2026-27 crop faces threats from plant diseases, bad weather, and a potential strong El Niño pattern that can bring heavy floods or droughts. Despite earlier challenges, Ghana's deliveries for the 2025-26 season beat expectations by surpassing 750,000 tons against a starting target of 650,000 tons, partly boosted by beans smuggled in from other countries.