Ghana’s government unveils farmer pay increase, amid EUDR traceability system roll-out plans

Ghana’s government has confirmed a higher price to be paid to cocoa farmers facing key production challenges, along with the planned introduction of a new traceability system linked to the EUDR environmental policy, writes Neill Barston.

As noted by the country’s governing cocoa organisation, Cocobod, the nation’s minister for finance, Dr. Cassiel Ato Forson, confirmed crop payments are rising this month to US5,040 per tonne, up from $3,100 in the 24/25 season.

While this represents a significant increase of 62% pure dollar increases, sector observers have noted that a weak present exchange rate for the local Cedi currency at ¢10.25 to US$1, means the real-terms payout is just GH₵51,660 per tonne (GH₵3,228.75 per bag) for farmers.

Furthermore, an internal assessment from Ccobod noted that the lack of a major real-terms rise in local currency had left some farmers with mixed feelings as to whether they would in fact feel any tangible benefit. 

Wider support arriving 
However, greater positivity has reportedly been felt surrounding initiatives on the horizon that could potentially make a difference within the region, which has faced considerable challenges as it has been impacted by price volatility, crop disease and the sector’s ageing workforce suffering from long-term infrastructure investment.

In response, Cocobod said that this season would see the reintroduction of free cocoa fertilisers (available in both liquid and granular forms), free insecticides and spraying machines, as well as free fungicides to tackle issues of crop failure, and to raise productivity of farming. 

As the organisation explained, its newly introduced traceability system aims to ensure that cocoa produced in the nation can be tracked between individual farms, to the point of shipment, to meet the introduction timeline of the EUDR legislation due at December 2025, helping tackle deforestation and enhanced monitoring of child labour issues.

Furthermore, there are also plans for a Tertiary Education Scholarship Scheme for Children of Cocoa Farmers beginning from next year, 

According to Ghana’s government press statement on its plans for the sector, it said that as part of the 2026 Budget, the Ghana Cocoa Board Act will be amended to make it illegal for Cocobod to deviate or stray from its core mandate to protect the cocoa industry.

Notably, the government confirmed that Cocobod ‘must focus on increasing cocoa yields, improving the cocoa value chain and the wellbeing of the cocoa farmer,” cease ‘quasi-fiscal activities.

In addition, the government reaffirmed its support for the national cocoa body’s new leadership, and pledged support to ensure the delivery of new roads linked to cocoa production in the region, which would now come under national responsibility. It also pledged to offer wider backing to the organisation in restoring the wider prosperity of the sector as an integral part of the country’s economy.