The Ghana Cocoa Board (COCOBOD) has assured cocoa farmers that urgent steps are being taken to resolve delays in the payment of proceeds for cocoa beans purchased through Licensed Buying Companies (LBCs).
Speaking at a press conference in Accra on Friday, COCOBOD Chief Executive Officer, Dr. Randy Abbey, explained that the payment challenges were largely triggered by a downturn in global cocoa prices and the growing reluctance of international offtakers to buy Ghana’s cocoa due to its relatively higher pricing.
Dr. Abbey disclosed that Ghana’s cocoa is currently priced at about US$6,300 per tonne, inclusive of haulage, grading, warehousing, and shipping costs, compared to an average global market price of approximately US$4,400 per tonne.
He noted that while COCOBOD has already sold more than 530,000 metric tonnes of cocoa, about 50,000 metric tonnes supplied by farmers remain unsold due to Ghana’s non-competitive pricing, resulting in delays in payments to affected farmers.
“We are fully aware of the situation and we take very seriously the concerns of the farmers and the Licensed Buying Companies,” Dr. Abbey said. “COCOBOD, the Ministry of Finance, and the government are working closely to find a solution as quickly as possible.”
He appealed to farmers and LBCs to remain patient, assuring them that their interests remain a top priority.
“We understand what they are going through. It is their sweat and hard work, and we will ensure that they are paid,” he assured.
Dr. Abbey admitted that the cocoa sector is currently facing significant financial challenges, stemming from COCOBOD’s inability to service both interest and principal obligations on cocoa bills, a situation that necessitated a restructuring.
According to him, these challenges contributed to COCOBOD’s failure to secure its annual syndicated loan, forcing the Ministry of Finance to step in to finance the cocoa crop for the season.
Looking ahead, Dr. Abbey revealed that the government is developing a more sustainable financing model for the cocoa sector, one that prioritises local value addition rather than the export of raw cocoa beans.
“We are looking at a funding structure that does not tie our hands through the collateralisation of raw cocoa beans,” he explained. “We want a financing model that supports and facilitates value addition.”
He stressed that any financing arrangement that restricts COCOBOD’s ability to prioritise value addition would not be considered.
Dr. Abbey announced that the new funding model is expected to take effect from the 2026/2027 cocoa season, which is scheduled to commence in October.