President John Dramani Mahama has defended his government’s recent reduction of the cocoa producer price, describing the decision as difficult yet essential to restore competitiveness and address severe liquidity challenges in the sector.
Speaking during the 2026 State of the Nation Address, President Mahama warned that maintaining the previous pricing structure without adequate financial support would have forced Ghana into additional borrowing, threatening the fragile economic recovery.
“In the last week, we have had to take the painful but necessary decision to revise the producer price of cocoa to achieve competitive pricing and resolve the acute liquidity challenges in the sector,” he told Parliament.
He explained that failure to act would have led to billions in unplanned expenditures, potentially dragging the country back into the severe economic pressures it had only recently begun to overcome.
Acknowledging the concerns and protests from cocoa farmers, President Mahama assured them that the reforms are aimed at long-term benefits, including fairer and more transparent pricing. The adjustments form part of a broader strategy to restructure and modernise the cocoa value chain while protecting farmer incomes.
“While fully understanding the concerns and protests of our farmers, I can firmly assure them that the reforms announced by government will see effect. It will be a total transformation of the cocoa sector and guarantee them a fair and transparent price that enables them to meet production costs and earn decent margins,” he said.
The President emphasised that disciplined economic decision-making is critical to shielding Ghana from renewed hardship and stabilising both the cocoa sector and the wider economy. He added that prudent choices today are necessary to prevent deeper challenges tomorrow.
The cocoa price revision is expected to remain a central topic for farmers, exporters, and financial markets as Ghana works to strengthen one of its most vital export industries while maintaining economic stability.
