Editorial: Cocoa Crisis Meeting Must Not End As Another Well-Worded Communiqué; It Must Produce Relief For Farmers

President John Dramani Mahama will convene an emergency Cabinet meeting scheduled for today, Wednesday, February 11, 2026 to address the deepening crisis in Ghana’s cocoa sector. The announcement, made by Minister for Government Communications, Felix Kwakye Ofosu, comes amid mounting concerns over severe financing constraints that have disrupted cocoa purchases and delayed payments to farmers and other actors across the value chain.

The cocoa industry, a major pillar of Ghana’s economy and a critical source of livelihood for millions of rural households, is grappling with liquidity shortfalls that threaten its stability. Licensed Buying Companies (LBCs) have warned that without urgent financial intervention, the sector risks a breakdown.

The Licensed Cocoa Buyers Association of Ghana (LICOBAG) estimates that government must secure emergency funding to purchase approximately 300,000 tonnes of cocoa beans by September 2026, to avert a potential collapse.

The Ghana Cocoa Board (COCOBOD) has acknowledged the funding gap and confirmed ongoing discussions with the Ministry of Finance to explore alternative financing arrangements, including a possible shift away from the long-standing syndicated loan model that has traditionally supported cocoa purchases.

Meanwhile, cocoa farmers have voiced strong dissatisfaction with the producer price announced for the 2025/2026 season, arguing that it falls short of expectations and could fuel smuggling and further erode incomes.

The emergency Cabinet session is expected to focus on ensuring timely payments, securing sustainable financing and restoring confidence in the cocoa value chain. The meeting is both necessary and overdue. For years, the country’s cocoa sector has been sustained more by rhetoric than reform, and today’s payment delays are merely the most visible symptom of deeper structural failures.

To The Chronicle, this meeting must not end as yet another well-worded communiqué; it must produce hard decisions and immediate relief for farmers whose livelihoods are hanging by a thread.

Across cocoa-growing communities, the complaints are consistent and troubling. Farmers report long delays in receiving payment after delivering their beans, forcing many to borrow at exploitative interest rates to survive the lean months.

Some are unable to pay school fees, hire labour or maintain their farms. Others have abandoned proper farm maintenance altogether, accelerating the decline in productivity. When payments are delayed, cocoa farming ceases to be a business and become a gamble.

The frustration is compounded by the producer price for the 2025/2026 season, which many farmers say does not reflect rising costs of inputs, labour and living expenses. With neighbouring countries offering higher prices, smuggling is no longer just a criminal issue; it is an economic signal that Ghana’s pricing and incentive structure is broken. No amount of moral suasion will stop smuggling if farmers feel cheated within the official system.

At the heart of the current crisis lies COCOBOD’s chronic financing problem. The long-relied-upon syndicated loan model, once the backbone of cocoa purchases, has become increasingly fragile due to rising debt, declining production, and shaken lender confidence.

Yet for too long, policymakers treated this model as untouchable. The result is a liquidity crunch that has rippled through LBCs, delayed payments and undermined trust in the entire value chain.

The Chronicle holds the view that the emergency Cabinet session must move beyond firefighting. Securing short-term financing to buy the outstanding 300,000 tonnes of cocoa is essential, but it is not enough. Government must also outline a credible medium- to long-term financing strategy for the cocoa sector, including restructuring COCOBOD’s debt, improving transparency in its operations, and reducing inefficiencies that drain resources meant for farmers.

Equally critical is restoring the dignity of the cocoa farmer. Timely payment should not be treated as a favor or an intervention; it is a basic obligation. If cocoa remains Ghana’s pride, then farmers must be treated as partners, not shock absorbers for systemic failures.

The Chronicle believes that this meeting presents an opportunity to reset the cocoa conversation. We have heard enough diagnoses. What farmers need now are decisions, timelines and accountability. Cocoa built this nation. It cannot be allowed to collapse under the weight of indecision.

 

 

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