The Chief Executive Officer of the Ghana Association of Banks (GAB), John Awuah, has stated that if cocoa farmers are bearing the burden of price cuts, the Ghana Cocoa Board (COCOBOD) must undergo drastic institutional reforms to eliminate waste and inefficiency.
Speaking on the cocoa sector turmoil cited by The High Street Journal on Friday, February 13, 2026, Awuah acknowledged the hardship farmers face following the reduction of producer prices from 3,625 Ghana cedis to 2,587 Ghana cedis per 64 kilogramme bag but insisted the decision was necessary to prevent COCOBOD’s collapse.
“To our farmers, it is unfortunate, but you can’t blame the managers of the economy. They have made a decision to save COCOBOD from collapsing at the current guaranteed price,” he stated.
Call for Institutional Purging
Awuah strongly believes that this moment presents an opportunity to transform COCOBOD by addressing long standing problems including overstaffing, procurement weaknesses, unproductive structures, and operational misalignment that have weakened its efficiency over time.
“It is now time to purge COCOBOD of the waste, overstaffing, unproductivity, procurement ineptitude, and operational misalignment,” he added.
The sacrifice, he insists, must not be one sided. If farmers are tightening their belts, COCOBOD must demonstrate equal fiscal discipline by cutting unnecessary costs and improving operational efficiency.
Price Cut Reflects Market Reality
The government announced on Thursday, February 12, 2026, that the producer price for the remainder of the 2025 to 2026 crop season would be 41,392 Ghana cedis per tonne, equivalent to 2,587 Ghana cedis per bag, representing a 28.6 percent reduction.
Finance Minister Dr Cassiel Ato Forson explained that global cocoa prices dropped from an average of 7,200 United States dollars per tonne in August 2025 to approximately 4,100 United States dollars per tonne by February 2026. This steep decline left Ghana’s cocoa overpriced relative to competitors and created severe cash flow constraints for COCOBOD.
The Producer Price Review Committee, chaired by Dr Ato Forson, recommended paying farmers 90 percent of the achieved gross Free On Board (FOB) price of 4,200 United States dollars per tonne to cushion the impact of the market downturn.
Praise for Finance Minister
Awuah commended Finance Minister Dr Cassiel Ato Forson for what he described as decisive leadership in grabbing the bull by the horns, even if the action came later than expected. In his view, the move signals a renewed commitment to fiscal responsibility, not just in rhetoric but in action.
He assured farmers that when world market prices improve, similar pressure will be applied to the government to restore producer prices in line with prevailing rates at that time.
Government Announces Sweeping Reforms
The price adjustment forms part of broader reforms announced by Cabinet following an emergency meeting on Wednesday, February 11, 2026. Key measures include converting 5.8 billion Ghana cedis in legacy debt into equity, transferring 4.35 billion Ghana cedis in road construction liabilities to the Ministry of Roads and Highways, and launching a forensic audit covering COCOBOD operations over the past eight years.
From the 2026 to 2027 season, a minimum of 50 percent of all cocoa beans must be processed locally. The government will also replace the outdated 32 year old syndicated loan model with a new system using domestic cocoa bonds.
COCOBOD has long played a central role in Ghana’s economy, managing one of the country’s most important export commodities. However, in recent years, concerns over rising debts, high administrative costs, and operational inefficiencies have grown louder.
The current crisis, according to Awuah, should be the turning point for transformational change in the existence of the board.
