Ghana must process at least half of its cocoa production locally to shield the economy from fluctuations in international market prices, Minister for Trade, Agribusiness and Industry Elizabeth Ofosu-Adjare has said. Speaking at the EU-Ghana Agribusiness Exhibition Forum and Trade Mission 2026 in Accra, she noted that cocoa prices had fallen sharply from approximately US$10,000 per tonne in early 2025 to about US$4,000 by the beginning of 2026, MyJoyOnline reported.
Prices have since made a partial recovery. On Tuesday, November 3, international cocoa prices traded between US$5,420 and US$5,447 per tonne, Citi Newsroom reported. Ofosu-Adjare said Ghana’s existing installed cocoa grinding capacity exceeds 500,000 tonnes, providing a strong foundation for achieving the government’s target of processing at least 50 per cent of its cocoa domestically.
When Ghana’s 50% cocoa processing target takes effect
The target was approved by Cabinet and announced by Finance Minister Dr Cassiel Ato Forson on February 12. Beginning with the 2026/27 crop season, at least half of all cocoa beans produced in Ghana must be processed locally, according to 3News. The policy reforms also allow the Ghana Cocoa Board (COCOBOD) to sell cocoa beans of any quantity directly to local processing companies. In addition, the government plans to revitalise the state-owned Cocoa Processing Company (CPC). The 2026/27 cocoa season is already under way. In September, the government raised the producer price to GH¢42,400 per tonne.
How much of Ghana’s cocoa is processed locally?
Ghana currently processes less than 40 per cent of its annual cocoa harvest locally. Data from the US Department of Agriculture, cited by Ecofin Agency, indicate that domestic processors handled an average of 220,000 tonnes of cocoa beans annually between 2023 and 2025, compared with average production of nearly 600,000 tonnes.
Although Ghana’s installed processing capacity was estimated at 504,780 tonnes in 2025, actual production remained considerably lower. Ecofin attributed the shortfall largely to difficulties local processors face in securing adequate supplies of cocoa beans. In March, Cocoa Marketing Company (CMC) Managing Director Dr Wisdom Dogbey said achieving the 50 per cent target would require additional investment.
He pointed out that CPC alone has an installed processing capacity of approximately 64,000 tonnes but operates well below that level, 3News reported. Speaking at an investment forum in New York on Monday, October 26, Dogbey maintained that existing local factories could increase production if they received adequate working capital, equipment upgrades and dependable markets for their finished products.
He also highlighted the importance of improving access to export markets. In July, CMC announced that it had secured offtake commitments in the United Arab Emirates and Saudi Arabia for semi-finished cocoa products, including liquor, butter, cake and powder.
Growing exports of value-added cocoa products
Ofosu-Adjare cited the performance of Ghana’s non-traditional exports as evidence of the economic benefits of local processing. These exports reached US$5 billion in 2025, representing a 30.7 per cent increase. Processed and semi-processed products contributed US$3.9 billion, with cocoa paste, butter and powder among the leading exports. Cocoa product exports alone increased by 90 per cent to US$1.8 billion in 2025, according to Ghana Export Promotion Authority figures reported by Ecofin.
Cocoa paste generated US$789.3 million in export earnings, while cocoa butter contributed US$635.7 million. The minister said the government’s value-addition agenda would also cover other agricultural commodities, including cashew, fruits, vegetables, cassava, maize, rice and oil palm. Citi Newsroom noted that less than 10 per cent of Ghana’s raw cashew production is currently processed locally.
Ofosu-Adjare encouraged European investors to partner with Ghanaian businesses in processing, technology transfer and export-oriented manufacturing instead of focusing solely on buying and selling commodities. As part of efforts to attract investment into manufacturing, construction has begun on an industrial park at Afienya in Tema, an initiative being undertaken by her ministry in collaboration with the Free Zones Authority.
Weather conditions threaten this season’s cocoa harvest
Ghana’s cocoa production could face further pressure during the current season due to unfavourable weather conditions. In July, COCOBOD informed Reuters that cocoa output was expected to decline by at least 16 per cent, citing the effects of El Niño and excessive rainfall in May and June, MyJoyOnline reported.
Ghana produced 771,000 tonnes of cocoa in the previous season, exceeding its target of 650,000 tonnes. However, farmers have reported a difficult start to the current season, pointing to excessive rainfall in some cocoa-growing areas, drought in others and delays in the distribution of fertiliser, which reportedly arrived several months behind schedule.
The Ghana Meteorological Agency has confirmed the presence of a strong El Niño and warned of prolonged dry spells. The challenges are also reflected in the sector’s economic performance. Data from the Ghana Statistical Service show that cocoa sector growth slowed to 5.2 per cent in the second quarter of 2026, down from 14.2 per cent over the same period in 2025.
