Ghana has taken the decision to reduce the farmgate cocoa price paid to farmers amid falling global cocoa prices, which have significantly impacted the country's ability to sustain payments to its cocoa producers. As the second largest cocoa producer in the world, Ghana has been facing challenges in meeting the financial needs of its farmers, forcing them to operate under harsh conditions as cocoa demand has declined. The global cocoa price has halved over the past year, dropping to about $4,000 per metric ton, making it hard for the government to uphold previously set wage standards for farmers.

Under the new regulations established by the market regulator Cocobod, the farmgate price for cocoa has dropped from nearly $5,300 per ton to $3,580 per ton for the remainder of the 2025/2026 season. This drastic adjustment reflects the urgent necessity for the government to align local prices with international trends, which are driven by decreased demand. The decision comes in response to a situation where thousands of farmers were not only facing payment delays but also struggling to afford basic necessities and maintenance on their farms, resulting in a backlog of unsold cocoa beans.

In light of these changes, Ghana's government has directed the market regulator to commence immediate repayment to affected cocoa farmers. This initiative aims to stabilize the financial situation of farmers who have suffered from payment backlogs, ensuring that they can afford essential resources while encouraging a more sustainable cocoa production environment amid fluctuating international market conditions. The future of Ghana's cocoa industry heavily relies on balancing local farmer needs with global price realities, highlighting the challenges faced in commodity-dependent economies.