A Development Economist, Dr Kwadjo Ahodo , is predicting that more cocoa farms are likely to be turned into sites for illegal small-scale mining (Galamsey) due to the reduction in cocoa prices.
He has told farmers to brace themselves for further price cuts by the Finance Minister.
In a statement Dr Kwadjo Ahodo said, “So, post the announcement of the cocoa price cut, I did some calculations to see how much money could be lost by cocoa farmers.
“I estimated that losses could be more than 2 billion cedis, depending on the number of farmers and how many bags they have to sell at the new price of GHS2,587 per bag.
“As I intimated earlier, cocoa analysts project surpluses for the 2025/26 and 2026/27 seasons, meaning possible further declines in world prices. This also means government may reduce the producer price again depending on how much the world prices decline. Cocoa farmers, brace yourselves! We are also likely to see more cocoa farms into galamsey sites!!”
Similarly, another economist, Dr Frank Bannor criticised the Mahama administration for the decision to reduce the prices of cocoa.
Citing how the previous Akufo-Addo administration paid teachers for months despite sitting at home due to the COVID-19 outbreak, he said, the Mahama administration should also have insulated cocoa farmers by absorbing the exogenous shocks.
“A robust economy should be able to insulate farmers from any exogenous shocks! Reason Akuffo Addo paid teachers for about 6 months while sitting at home. What we have today is simply a charade characterised by VoodooEconomics,” he wrote.
The Mahama government has announced a downward adjustment of the cocoa producer price for the remainder of the 2025/2026 crop season, setting it at GH¢2,587 per bag, down from the GH¢3,625 set at the start of the season.
The move follows a critical Cabinet meeting held on Wednesday to address a deepening liquidity crisis that has left thousands of farmers unpaid for months.
The price reduction is a direct response to a volatile international market. While cocoa prices reached historic highs of over $12,000 per tonne in late 2024, they have since plummeted by over 63% year-on-year, trading around $3,772 per tonne as of February 2026.
This “demand destruction” where high chocolate prices led consumers to buy less coupled with a projected global surplus of 287,000 metric tonnes for the current season, has forced Ghana to realign its farmgate prices with international realities.
To ensure this crisis does not repeat, the government is introducing several landmark reforms:
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New Financing Module: Moving away from expensive international syndicated loans, Ghana will now utilize domestic cocoa bonds to purchase beans. These bonds will create a revolving fund to ensure a steady cash flow.
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Revival of PBC: The state-owned Produce Buying Company (PBC) will be revitalized with immediate effect to resume its role as the leading licensed buyer.
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Domestic Processing Mandate: In a push for value addition, the government has directed that the remainder of the 2025/2026 beans be processed locally. Starting from the 2026/2027 season, 50% of all cocoa produced in Ghana must be processed domestically.
