The Ghanaian government will introduce a new COCOBOD Bill, guaranteeing cocoa farmers at least 70% of the gross Free-on-Board (FOB) price for their produce. Finance Minister Dr. Cassiel Ato Forson announced this during the 2026 Mid-Year Budget Review in Parliament. This significant legislative change aims to modernise the governance and financing of Ghana’s vital cocoa sector.
The proposed Bill will repeal and replace the Ghana Cocoa Board Act, 1984 (PNDCL 81), which has regulated the industry for decades. Dr. Forson explained that the new law will establish a producer pricing mechanism. This mechanism will directly link the prices paid to farmers with international cocoa market developments, exchange rate fluctuations, and other relevant market conditions. This ensures farmers receive a fairer share of the export value of their produce.
This initiative fits into Ghana's broader economic strategy to enhance value addition and improve farmer livelihoods. Cocoa remains a cornerstone of the Ghanaian economy, contributing significantly to export earnings and rural employment. Previous challenges included price volatility and the need for greater local processing. This Bill addresses these long-standing issues by ensuring a more stable and equitable pricing system for farmers, who are crucial to the nation's agricultural output.
Finance Minister Dr. Cassiel Ato Forson stated, "We will also guarantee cocoa farmers not less than 70 percent of the gross Free-on-Board (FOB) price." He added that these reforms will establish a new financing framework for cocoa purchases and related operations. This framework aims to restore the long-term financial sustainability and operational efficiency of COCOBOD, the state-owned cocoa marketing board.
Looking ahead, the new legislation will also require that at least 50% of cocoa beans produced in Ghana are processed locally. This mandate is designed to increase value addition within the country and create more economic opportunities. This move could significantly boost Ghana's industrial capacity and reduce reliance on raw material exports. Decision-makers and markets will closely watch the implementation of these reforms, as they could reshape the future of Ghana's cocoa industry and its contribution to the national economy.
The reforms are expected to strengthen the financial position of the cocoa sector. They will improve returns for cocoa farmers and promote local processing. This strategic shift positions Ghana’s cocoa industry for more sustainable growth in the long term. The government anticipates these changes will lead to greater stability and prosperity for all stakeholders in the cocoa value chain.