The Cocoa Marketing Company (CMC) Ghana Limited has outlined a series of measures aimed at stabilising the country’s cocoa sector, including increased local processing and strengthened forward sales strategies.
The proposals, detailed in a policy brief authored by Dr. Wisdom Kofi Dogbey, Managing Director of CMC, call for accelerating local processing of cocoa beans to achieve at least 50 percent value addition, allocating more beans to domestic processors, and maximising forward sales to lock in favourable prices. The brief also highlights leveraging existing processing capacity without major new capital investment.
The recommendations come amid ongoing global market volatility that has affected Ghana’s cocoa revenues. After reaching historic highs in 2024 due to supply shortfalls in West Africa, international cocoa prices have since corrected sharply, prompting authorities to adjust producer payments for the remainder of the 2025/2026 crop season.
The producer price has been reduced from GH¢3,625 to GH¢2,100 per 64-kilogramme bag for the rest of the season. The Government has also reiterated its commitment to processing at least 50 percent of cocoa beans locally as part of broader sector reforms aimed at value addition.
Dr. Dogbey noted that CMC had proactively cushioned farmers from the price slump through forward sales. “For the current crop season, CMC had already contracted approximately 90 percent of projected volumes during the period of historically high cocoa prices, before the recent correction in global markets,” he explained. He added that this strategy had provided a “significant buffer against the subsequent decline in prices and softer demand conditions.”
He further clarified that Ghana’s cocoa pricing mechanism is based on the weighted average of total seasonal sales rather than spot prices, ensuring that “the final gross FOB outcome for the season remains commercially sound.”
The brief also introduced Project Elevate, a strategic initiative designed to reduce Ghana’s dependence on raw cocoa exports and increase domestic processing. Under the project, more cocoa beans will be allocated to local processors to produce semi-finished products such as cocoa liquor and cocoa butter, which command higher value per tonne.
The Cocoa Processing Company (CPC) and West African Mills Company (WAMCO), both partly government-owned, were identified as strategic partners. The policy brief noted that both companies currently operate below installed capacity, and processing volumes can be increased immediately using existing infrastructure without major new investment. Private processing firms are also expected to play significant roles in implementing the initiative.
As the commercial arm of the Ghana Cocoa Board, CMC is responsible for marketing and selling cocoa on international markets, directly influencing export earnings and farmer payments. The policy brief concluded that combining prudent forward sales with accelerated local value addition offers a practical pathway to stabilise revenues, protect farmer incomes, and strengthen Ghana’s position in the global cocoa value chain.
