ACCRA, Ghana — Ghana’s cocoa farmers could soon have a legally protected claim to at least 70% of the gross Free on Board (FOB) price of cocoa under a major reform passed by Parliament.

But there is an important distinction that farmers and the public need to understand.

The Ghana Cocoa Board Bill, 2026 has been passed by Parliament but has not yet become law. As of August 11, 2026, the Bill is awaiting presidential assent, while the opposition New Patriotic Party (NPP) is urging President John Dramani Mahama not to assent to it and instead return it to Parliament for broader consultation.

That means the proposed 70% provision is not yet an enforceable legal entitlement.

So what exactly does the 70% rule mean?

And does it mean a cocoa farmer will simply receive 70% of whatever Ghanaian cocoa is worth on the international market?

Not quite.

That distinction is at the heart of the debate.

What Is The 70% Rule?

One of the most closely watched provisions in the new COCOBOD legislation is the proposed requirement that cocoa farmers receive not less than 70% of the gross FOB export price of cocoa.

The objective is to give farmers a legally protected share of the value generated when Ghanaian cocoa is sold for export.

In simple terms, the principle is that when the value of Ghanaian cocoa rises, farmers should receive a substantial portion of that value.

But the 70% figure should not be confused with a direct cash payment of 70% of the international cocoa price.

It refers to the gross FOB value within Ghana's cocoa pricing and marketing framework.

That distinction matters because the farmer does not normally sell directly into the international export market.

FOB Is Not The Same As The Farmgate Price

For many cocoa farmers, the term FOB — Free on Board — can be confusing.

FOB generally refers to the value of a commodity at the point where it is loaded for export, subject to the specific contractual and market arrangements involved.

The farmer, however, sells cocoa through Ghana's domestic cocoa purchasing system.

The amount announced by the authorities for farmers is the producer price, normally expressed per tonne and converted into the equivalent price per 64-kilogramme bag.

Therefore:

70% of FOB does not simply mean a farmer takes the international cocoa price, multiplies it by 70%, and receives that amount directly.

The relationship between the international cocoa value, exchange rates, COCOBOD's financing arrangements, marketing costs, producer pricing and other components of the cocoa system is more complicated.

That is why the implementation of the proposed provision could be just as important as the wording of the law itself.

Ghana Has Already Used A 70% Formula

The 70% concept is not entirely new to Ghana's cocoa pricing system.

For the 2025/26 cocoa season, COCOBOD said the producer price was initially calculated using 70% of a gross FOB value of US$7,200 per tonne.

That calculation produced a producer price of GH¢51,660 per tonne, equivalent to GH¢3,228.75 per 64-kilogramme bag at the time.

COCOBOD subsequently revised the producer price as global cocoa prices and market conditions changed.

The published 2025/26 producer price later stood at GH¢41,392 per tonne, equivalent to GH¢2,587 per 64-kilogramme bag.

That history provides an important lesson.

The 70% formula does not mean farmers will always receive the same amount of money.

The actual cedi value can change depending on the underlying cocoa value, exchange rate and other pricing conditions.

So What Could Actually Change For Farmers?

If the Bill receives presidential assent and the 70% provision is implemented as intended, farmers could have a stronger statutory basis for receiving a minimum share of cocoa's export value.

That could potentially provide greater protection when international cocoa prices rise.

It could also make the pricing system more predictable and give farmers greater visibility over how the value of their crop is translated into the producer price.

But the most important question is not simply:

“Will farmers get 70%?”

The more important questions are:

70% of what?

Calculated how?

And how much ultimately reaches the farmer?

Those details will determine whether the provision delivers a meaningful improvement in farmers' incomes.

Why The Debate Matters Now

The proposed reform comes at a difficult time for Ghana's cocoa industry.

The sector has been dealing with falling international cocoa prices, financial pressures on COCOBOD and changes to the way cocoa purchases are financed.

In February 2026, the government announced a new financing model involving domestic cocoa bonds and subsequently reduced the farmgate price to reflect changing international market conditions.

The revised producer price was reported at GH¢41,392 per tonne.

Against that background, the proposed 70% provision has become particularly significant.

Farmers want to know whether the new framework will protect their income when international cocoa prices change sharply.

At the same time, the government has to ensure that COCOBOD can finance cocoa purchases and maintain the financial sustainability of the sector.

Those two objectives must ultimately work together.

The Farmer Wants More Than A Percentage

For a cocoa farmer, the percentage written into legislation is only one part of the story.

What ultimately matters is what happens at the farmgate.

Farmers will want answers to practical questions such as:

How much will be paid per bag?
When will farmers receive their money?
Will licensed buying companies have adequate financing?
Will farmers receive the full announced producer price?
What happens when international cocoa prices fall?
What happens when prices rise?
What portion of the export value is absorbed by the wider cocoa marketing system?
How transparent will the pricing calculations be?

These are the questions that will determine whether the 70% provision becomes a meaningful improvement in the lives of cocoa-producing communities.

What Happens When Cocoa Prices Rise?

This could become one of the biggest tests of the proposed framework.

If the international value of Ghanaian cocoa increases significantly, a functioning 70% mechanism should give farmers a stronger claim to benefit from that increase.

That could potentially make cocoa farming more attractive and improve confidence among farming communities.

It could also help address concerns that farmers do not always benefit proportionately when international cocoa prices rise.

But the reverse scenario is equally important.

If international cocoa prices fall and the farmer's share is directly linked to the gross FOB value, the producer price could also come under pressure.

Therefore, the proposed provision should not automatically be interpreted as a promise of a permanently high farmgate price.

It is better understood as a minimum share of an underlying export value, subject to how the pricing mechanism is ultimately structured and implemented.

The Bigger COCOBOD Reform

The 70% provision is only one component of the proposed legislation.

The Ghana Cocoa Board Bill, 2026 seeks wider changes to the governance, financing and regulation of Ghana's cocoa industry.

The reforms cover areas including:

COCOBOD governance and oversight;
Cocoa-sector debt and financing;
Local cocoa processing;
Farmer welfare;
Regulation of cocoa farms;
Licensing and dispute resolution;
New offences and penalties; and
Protection of cocoa-producing land.

The legislation also seeks to promote greater domestic processing of Ghanaian cocoa.

The broader objective is to enable Ghana to capture more value from its cocoa rather than continuing to depend heavily on the export of raw cocoa beans.

For a country that remains one of the world's major cocoa producers, that is a significant policy objective.

Why The NPP Is Opposing The Bill

The NPP's objection is not simply about the proposed 70% provision.

The opposition has raised concerns about the process through which the Bill was passed, arguing that it was rushed through Parliament under a Certificate of Urgency.

The party says farmers, landowners and other relevant stakeholders did not receive sufficient opportunity to contribute to the legislation before its passage.

It has therefore called on President Mahama to withhold his assent and return the Bill to Parliament for further consultation.

Some of the provisions attracting criticism relate to restrictions concerning the destruction or uprooting of cocoa trees.

The NPP argues that such provisions could create difficulties for farmers who need to remove old, diseased or unproductive trees from their farms.

That means the current debate goes beyond cocoa prices.

It now touches on farmer rights, land use, environmental protection and the future structure of Ghana's cocoa industry.

Could The 70% Rule Make Cocoa Farming More Attractive?

Potentially — but price alone will not solve the industry's problems.

For years, farmers and industry stakeholders have raised concerns about the proportion of cocoa's value that ultimately reaches producers.

A transparent mechanism that links farmer income more closely to export value could improve confidence.

If farmers know that rising international cocoa prices can translate into meaningful increases in their earnings, cocoa farming could become more attractive compared with alternative economic activities.

But farmers also need a functioning production system.

That includes:

Reliable farm inputs;
Fertiliser;
Effective extension services;
Roads to farming communities;
Reliable cocoa evacuation;
Timely payments;
Disease and pest control;
Rehabilitation of ageing farms;
Access to affordable finance; and
Higher farm productivity.

A higher percentage of the export value will mean little if farmers continue to face serious problems with productivity, infrastructure and access to markets.

The Real Test Will Be Implementation

This could ultimately be the most important part of the entire reform.

Ghana has introduced policies before. The difficult part has often been translating policy commitments into measurable improvements at the grassroots.

If the 70% provision becomes law, farmers will need a transparent system showing:

The gross FOB value.

How the farmer's share is calculated.

The producer price announced.

The deductions and costs involved.

And the amount ultimately paid to the farmer.

Such transparency could help farmers understand how changes in international cocoa prices affect the price they receive.

It could also reduce confusion and mistrust whenever producer prices are adjusted.

What Happens Next?

For now, the proposed 70% provision remains part of legislation that has passed Parliament but is awaiting presidential assent.

The NPP wants President Mahama to return the Bill to Parliament for broader consultation.

The President's decision will therefore be an important next step.

If he assents to the Bill, the focus will shift from parliamentary debate to implementation.

If he sends it back, Parliament could be required to reconsider some of its provisions.

Either way, the future of the legislation could have significant implications for cocoa farmers, buyers, processors and the wider Ghanaian economy.

The Bottom Line

The proposed 70% FOB guarantee could become one of the most consequential changes to Ghana's cocoa pricing framework in years.

But farmers should be careful about interpreting the figure as a straightforward promise that they will receive 70% of the international cocoa price directly in cash.

The real issue is the FOB value, pricing formula, exchange rate, producer price, deductions, financing structure and implementation mechanism.

And that is why the most important question is not simply:

“Will cocoa farmers get 70%?”

It is:

“How much will 70% actually put in the farmer's pocket?”

That is where the proposed COCOBOD framework will ultimately be judged.

Global Pulse GH will continue to follow the cocoa reforms and explain what they mean for farmers, businesses and Ghana's economy.

GLOBAL PULSE GH

Cocoa Farmers Could Get 70%: What The New COCOBOD Rule Means