The exporter covers all costs up to the moment the beans are loaded onto a ship at Ghana’s port
Ghana’s cocoa industry, the backbone of its agricultural exports, has faced turbulence in recent months. Farmers have voiced frustration over delayed payments, warning that the financial strain is not only eroding livelihoods but also affecting their well-being.
In response, the Minister of Finance, Dr Cassiel Ato Forson, announced on Thursday, February 12, 2026, at a press briefing, a major policy shift aimed at cushioning farmers against falling global cocoa prices.
The government’s Producer Price Review Committee (PPRC) has set a new benchmark whereby farmers will now receive 90% of the achieved gross Free on Board (FOB) price, pegged at US$ 4,200 per tonne.
This translates into a new producer price of GH¢41,392 per tonne, or GH¢2,587 per 64-kilogram bag, effective immediately for the remainder of the 2025-2026 crop season.
The adjustment is designed to mitigate income losses and provide much-needed financial relief to cocoa producers.
Dr Amin Adam slams Dr Ato Forson over cocoa sector reforms.
But what exactly does FOB mean in cocoa trade?
Free on Board (FOB), according to Investopedia, is a shipping term that marks the point at which responsibility for goods shifts from seller to buyer.
In the cocoa sector, FOB pricing means the exporter covers all costs up to the moment the beans are loaded onto a ship at Ghana’s port. From that point, the buyer assumes responsibility for freight, insurance, and delivery to the final destination.
By linking farm-gate prices to a percentage of the FOB value, Ghana ensures that farmers share in the benefits of international market movements.
This system provides transparency, stabilises incomes, and clarifies risk allocation between exporters and buyers.
SA/MA
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