Ghana’s cocoa sector is under mounting pressure as high producer prices, legacy forward sales and a retreat by international buyers leave cocoa beans unsold and some farmers unpaid.
Ghana Cocoa Board’s Chief Executive, Dr. Ransford Anertey Abbey, addressed a press briefing to clear the air on what has been a series of bad press for the country’s cocoa sector – once the chief export commodity massively supporting the economy .
He explained that the cocoa crop in 2024–25 season was not financed through the long-standing syndicated loan structure but directly by buyers, countering claims that funding shortfalls stemmed from misused funds. This shift followed COCOBOD’s inability in 2022 to fully service interest and principal on its cocoa bills, a condition that weakened confidence among lenders and reduced appetite to finance subsequent crops.
Dr. Abbey said the current strain was worsened by forward sales contracts signed at historically low prices. COCOBOD had committed to supply about 333,767 tonnes of cocoa at roughly GH¢41,600 per tonne, reflecting market conditions at the time.
Market conditions have since turned sharply. Global cocoa prices have fallen while Ghana’s farm gate price remains elevated. COCOBOD has paid farmers the equivalent of about GH¢80,640 per tonne, based on pricing decisions taken when exchange rates and global prices were significantly higher. Cocoa is now trading on international markets at around GH¢64,000 per tonne or below.
The mismatch has left some licenced buying companies holding beans without off-takers while others have delivered cocoa but are yet to be paid, Dr. Abbey said. COCOBOD has faced growing pressure from farmer groups in recent days over delayed payments and unpurchased beans.
Dr. Abbey noted these difficulties highlight deeper structural weaknesses. For more than three decades, syndicated loans required COCOBOD to pledge large volumes of raw cocoa as collateral; thus limiting the country’s ability to expand local processing and value addition.
Currently, government and the finance ministry are developing a new funding model aimed at reducing reliance on raw beans export. This new structure is expected to take effect from the 2026–27 season.
Pending the new model’s take-off, COCOBOD is appealing for patience from farmers – saying they remain committed to settling all payments.
Meanwhile, President-Licenced Cocoa Buyers Association of Ghana (LICOBAG) Samuel Adimado warns of a “looming collapse” in the cocoa sector due to severe funding and liquidity challenges. He disclosed an urgent need for Ghana Cocoa Board (COCOBOD) to address delayed payments to Licenced Buying Companies (LBCs), which in turn affect farmers across the country.
The sector’s funding challenges are having serious consequences for both farmers and LBCs. Many companies have been forced to pre-finance cocoa purchases using local bank loans – which carry high-interest rates of about 29.8 percent – due to delays of COCOBOD payments.
Mr. Adimado has called for a hybrid funding model, since the traditional syndicated funding has failed. Reports of an ongoing financial crisis in the Ghanaian cocoa industry have been rife amid warnings that it threatens to disrupt thousands of cocoa farmers’ livelihoods if immediate action is not taken.
Dr. Randy Abbey says he is hopeful that efforts to pass the COCOBOD Act will be expedited, allowing for the introduction of a new funding model for cocoa purchases while strengthening protections for cocoa trees.
This begs the question of whether syndicated loans secured in the sector’s name were expended without delivering promised benefits to cocoa-growing communities. Why has it become increasingly difficult for COCOBOD to access external funding, making the body lose creditworthiness?
Ghana Cocoa Board (COCOBOD) revealed that it has about 98,000 metric tonnes of cocoa to service under rollover contracts as discussions continue to resolve challenges arising from past delivery shortfalls.
Dr. Abbey explained that the rollover situation stems largely from COCOBOD’s inability to meet contract obligations in the 2023/2024 cocoa season. It failed to deliver 333,767 metric tonnes of cocoa despite having already signed contracts at a price of US$2,600 per tonne.
The decision continues to have far-reaching implications for the sector. Dr. Randy Abbey rejected claims that COCOBOD had defaulted on syndicated loan repayments, stressing that the defaults related strictly to cocoa delivery contracts.
“We are still reeling under that decision. It’s the reason why when cocoa prices went high as US$12,000, US$11,000 and US$10,000, the Ghanaian cocoa farmer and Cocoa Board could not benefit.”
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