The chamber of the Parliament erupted into sharp exchanges on Tuesday, February 17, 2026 after Minority Leader, Alexander Afenyo Markin, delivered a blistering statement condemning government’s decision to reduce the cocoa producer price mid-season, a move he described as “illegal, unjustified and an assault on the livelihood of cocoa farmers.”
“Thank you, Mr. Speaker, for the opportunity to make this statement on the need for the government to reverse, with immediate effect, the shocking decision to reduce the cocoa producer price,” he began.
Describing the move as both unlawful and unjust, Mr. Afenyo-Markin said the reduction of the prevailing producer price from GH¢3,625 per 64-kilogram bag to GH¢2,587 per bag amounted to an attempt to “short-change our gallant cocoa farmers.”
“Mr. Speaker, the producer price of GH¢3,625 is a minimum guaranteed price and is legally destined to run the full course of the 2025–2026 crop season.”
He reminded the House that Ghana’s cocoa sector calendar officially commences on October 1 each year and ends on September 30 the following year.
The country, he stressed, is currently midstream in the 2025–2026 crop season and that government cannot vary the announced minimum guaranteed price to the disadvantage of farmers or any stakeholder entitled to a share of the achieved Free-On-Board (FOB) price.“Note, Mr. Speaker, it is minimum and it is guaranteed for the entire course of the crop year,” he emphasised.
Producer Price Review Committee and FOB Calculations
The Minority Leader proceeded to explain the mechanism through which producer prices are determined. He told the House that the determination of the producer price and the sharing of the Free on Board (FOB) price among stakeholders is undertaken by the Producer Price Review Committee.
According to him, the FOB price for an approaching crop year represents the achieved weighted average of aggregated volumes and corresponding prices of cocoa already traded and contracted with international buyers.
He elaborated that the aggregates may include main crop beans sold at higher prices, light crop beans typically sold at a discount sometimes around 20 percent, as well as rollover beans that may be priced higher or lower depending on prevailing conditions.
What becomes the FOB price, he said, is not guesswork, neither is it a projection. It is the achieved weighted average of volumes already traded
He stressed that once the FOB price sharing formula is applied and announced for a crop year, the resulting producer price becomes binding on government and the Ghana Cocoa Board for the entire duration of that crop year.
“Because it is an achieved average minimum and guaranteed, government cannot cut the farmer’s price even by the slightest margin,” he insisted, adding “If anything, government can go up in the course of the year, as has been the case historically, but never down.”
Reference to October Announcement
Mr. Afenyo-Markin recalled that in October 2025, the Finance Minister, Dr. Cassiel Ato Forson, announced that the Cocoa Board had achieved an FOB price of $7,200 per tonne.
He stated that this translated into a producer price of $5,040 per tonne for farmers, which at the prevailing exchange rate was converted into GH¢58,000 per tonne, equivalent to GH¢3,625 per 64-kilogram bag.
“It is our candid opinion that the $7,200 FOB price was based on factually achieved weighted average prices of already traded cocoa and not speculation.”
If that figure was indeed factual, he argued, then government and the Cocoa Board are obligated to maintain the GH¢3,625 producer price until the end of the 2025–2026 crop season. “Be that as it may, Mr. Speaker,” he continued, “once a producer price has been determined and announced for the crop year, it is legally and contractually binding.”
The Minority Leader concluded by issuing a direct demand on behalf of his caucus.“Therefore, government cannot, in the course of a particular crop year, vary the producer price to the disadvantage of the farmer.
“We, the Minority, hereby call on government, as a matter of urgency, to restore the producer price of cocoa in Ghana to its original value of GH¢3,625 per 64-kilogram bag with immediate effect.”
He further demanded that government and the Ghana Cocoa Board compensate any farmers and Licensed Buying Companies (LBCs) who may already have suffered losses due to the recent announcement.
“We also demand that any difference that farmers and buying companies might have suffered be paid accordingly,” he added.
Majority Fires Back
The Majority side mounted its defence through the Deputy Minister of Trade, Agribusiness and Industry, Sampson Ahi, who rose to respond to the Minority’s fierce criticism over the cocoa producer price reduction.
From the outset, Mr. Ahi rejected the claim that the price cut was the result of incompetence. He argued that the current situation in the cocoa sector did not emerge overnight, but was rooted in decisions taken under the previous administration, led by former President Nana Addo Dankwa Akuffo Addo.
“We find ourselves in this situation because of the mess created under their watch,” he declared, drawing murmurs from the Minority bench. “They cannot run away from responsibility,” he added.
Rehabilitation Loans Under Scrutiny
The Deputy Minister of Trade, Agribusiness and Industry cited a $315 million facility secured from the African Development Bank to rehabilitate 156,000 hectares of cocoa farms.“That amount was spent, yet the full 156,000 hectares were not rehabilitated.”
He questioned how such a significant financial commitment could yield what he described as underwhelming results. “Only a fraction of the targeted hectares were completed. The Ghanaian people deserve answers.”
He further referenced an additional GH¢700 million reportedly borrowed domestically for cocoa rehabilitation. “These are serious financial commitments. Before accusing others of mismanagement, they must explain what happened to these funds.”
The $800 Million Syndicated Facility
The Deputy Minister also pointed to an $800 million syndicated loan facility taken during the 2022–2023 season.“They projected delivery of over 700,000 tonnes to service that facility, but only about 400,000 tonnes were delivered. What happened to the remainder?”
According to Mr. Sampson Ahi, the current administration inherited repayment burdens arising from these commitments. “We came into office to stabilise a sector already weighed down by financial obligations,” he insisted.
Responding directly to claims that Côte d’Ivoire was paying higher prices to its farmers, Mr. Ahi dismissed the assertion. “It is not accurate to suggest that Côte d’Ivoire has maintained a higher producer price. If that were the case, cocoa would be flowing across our borders in significant volumes.”
He maintained that pricing decisions in Ghana are influenced by international market trends. “Cocoa prices are not announced in a vacuum. They are based on prevailing global market prices.”
Global Market Pressures
Mr. Sampson Ahi explained that at the start of the 2025–2026 crop season, government announced an FOB price of $7,200 per tonne, translating into a 70 percent farmer share and GH¢3,625 per bag.“That was consistent with market conditions at the time, but markets fluctuate.”
He suggested that subsequent changes in international prices and revenue projections required difficult adjustments. “We must protect the long-term sustainability of the cocoa sector. Leadership requires difficult decisions,” he concluded.
Minority Counters
The Member of Parliament for Damongo, Samuel Abu Jinapor, however, dismissed the Majority’s defence as an attempt to shift blame.
“Mr. Speaker, it is important that we call a spade a spade. What is happening today in the cocoa sector is the direct result of gross mismanagement and poor governmental judgment.” He rejected the claim that debt or inherited obligations justified the mid-season price cut.
“Cocoa debt is as old as the industry itself. When the previous administration assumed office in 2017, it inherited significant debt yet farmers were paid. In 2020, there was debt, yet farmers were paid. Even last year, there was debt and farmers were paid.”
According to Mr. Jinapor, the issue was not debt but trading strategy. “The government had opportunities to engage in forward sales when prices were favourable. They did not. They had the opportunity to sell when cocoa reached $11,000 per tonne. They failed to act.”
The Member of Parliament for Damongo described the price reduction as unprecedented. “We have never seen a duly announced producer price reduced mid-season in this manner. One million Ghanaians are directly involved in cocoa farming. Nearly four million livelihoods depend on the cocoa value chain,” he said.
He also cited Côte d’Ivoire, arguing that Ghana, known for premium cocoa, should not be paying less. To him, this is not about grammar or public relations and that Farmers are asking for fairness.
Member of Parliament for Ofoase-Ayirebi, Kojo Oppong Nkrumah framed the matter in stark human terms. “For those of us from cocoa-growing communities, this is not about technical jargon,” he said. “It is about life and death.”
He narrated a call from a purchasing clerk in Kwabwedi No. 2 in his constituency who had already taken delivery of 200 bags at the old price.
“Because of the sudden change, he stands to lose about GH¢200,000. How many of us here can absorb such a loss and survive?”
He warned that the reduction would ripple through rural economies because “when you cut GH¢1,000 from every bag, you are cutting household incomes. You are increasing poverty.”
He also cautioned that trust in policy consistency would suffer. “In the same cocoa year, you promise GH¢3,625 and then reduce it to GH¢2,587. What message does that send?”He urged Cabinet to reconvene and restore the previous rate.
Majority Defends Government’s Record
On the Majority side again, Fred Agbenyo defended the government’s broader record on cocoa and agriculture. “We care about cocoa farmers, under our administration, we introduced free fertilizer programmes and distributed free seedlings,” he stated.
He accused the previous administration of mismanaging agricultural interventions and alleged that contracts awarded for cocoa rehabilitation were poorly executed. “You cannot pretend to care about farmers now,” he said, directing his remarks at the Minority.
He also referenced commitments by President John Dramani Mahama to increase value addition in the cocoa sector.
“We will ensure that at least 50 percent of our cocoa is processed locally. We will reduce dependence on syndicated loans and strengthen local financing.”Mr. Agbenyo maintained that the cocoa farmer was better positioned today compared to periods of high inflation in previous years.
Background
Last week, the government 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.
The Finance Minister, Dr Cassiel Ato Forson, who made the announcement, 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. At that time, the price was calculated at 70 per cent of a gross free-on-board price of $7,200 US dollars per tonne, using an exchange rate of GH¢10.25 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.
According to the Minister, the steep decline left Ghana’s cocoa overpriced relative to competitors and created serious cash flow constraints for COCOBOD. “The world market price has dropped significantly from the average of 7,200 tonnes to 4,100 per tonne, making Ghana’s cocoa beans uncompetitive and creating liquidity challenges,” he stated.
For more news, join The Chronicle Newspaper channel on WhatsApp: https://whatsapp.com/channel/0029VbBSs55E50UqNPvSOm2z
