By Alex Ababio
For thousands of cocoa farmers across Ghana, harvesting cocoa is only half the battle. Getting paid has become the bigger challenge.
After months of complaints over delayed payments, mounting debts and growing uncertainty in Ghana’s cocoa sector, the Ghana Cocoa Board (COCOBOD) has announced a fresh release of GH¢2.6 billion to Licensed Buying Companies (LBCs), promising that the money will finally reach farmers who have waited for months to receive payment for cocoa already delivered.
But one critical question remains: Will this latest intervention finally solve the payment crisis—or is it only another temporary fix for deeper structural problems facing Ghana’s cocoa industry?
The latest financial intervention comes against the backdrop of one of the most difficult periods in Ghana’s cocoa sector, where liquidity challenges, falling international cocoa prices, financing constraints and operational difficulties among Licensed Buying Companies have disrupted the normal flow of payments to farmers.
COCOBOD Announces GH¢2.6 Billion Release
In an official statement, COCOBOD confirmed that it has released GH¢2.6 billion to Licensed Buying Companies operating across all cocoa-growing regions to facilitate prompt payments to cocoa farmers.
According to the Board, approximately GH¢1.4 billion of the amount has been specifically earmarked to clear outstanding balances owed to farmers whose cocoa was purchased on credit.
Since the beginning of the 2025/26 crop season, COCOBOD says it has now paid a cumulative GH¢34.52 billion to Licensed Buying Companies for onward payment to cocoa farmers.
«”Out of the GH¢2.6 billion released today, approximately GH¢1.4 billion has been earmarked to clear the remaining balance LBCs owe cocoa farmers for cocoa taken on credit,” the Board stated.»
The cocoa regulator says it is working closely with Licensed Buying Companies to ensure affected farmers receive their outstanding payments without unnecessary delay.
To improve accountability, COCOBOD disclosed that monitoring mechanisms have been established to ensure the funds reach only farmers who are legitimately owed.
The Board further acknowledged what it described as the patience, resilience and understanding shown by cocoa farmers during the difficult period.
«”COCOBOD acknowledges the patience, resilience, and understanding demonstrated by cocoa farmers during this challenging period and wishes to assure all cocoa farmers that no farmer will be denied payment for cocoa legitimately sold through the approved cocoa purchasing system.”»
Farmers with unpaid balances have also been advised to contact the Licensed Buying Company through which they sold their cocoa so outstanding obligations can be settled.
Why Did Farmers Experience Delays?
Although the latest announcement has been welcomed across the industry, it follows months of widespread concern over delayed farmer payments.
Earlier this year, Reuters reported that despite an earlier GH¢3.62 billion disbursement by COCOBOD to Licensed Buying Companies, many cocoa farmers said they still had not received payment for cocoa supplied months earlier. Farmers and purchasing clerks raised concerns that some Licensed Buying Companies were themselves struggling with heavy debts owed to commercial banks, raising fears that part of the money intended for farmers could instead be absorbed by financial obligations.
Licensed Cocoa Buyers Association officials, however, urged patience, explaining that nearly one million cocoa farmers across Ghana could not all be paid simultaneously and that companies had been instructed to prioritize payments to farmers once funds became available.
The payment delays became a major source of hardship for farming communities, many of whom rely almost entirely on cocoa income to pay school fees, finance farm maintenance, hire labour and support household expenses.
Experts Warn Payment Delays Threaten Cocoa Production
The implications extend beyond individual farmers.
Reuters reported in April that prolonged payment delays—lasting up to six months in some communities—were beginning to threaten Ghana’s cocoa production itself.
Linus Giesen, Vice President of the Ghana Cocoa Cooperatives Association, representing more than 340,000 farmers, warned that many farmers had become reluctant to sell cocoa unless they received immediate payment because they lacked money to hire labour for harvesting and transporting cocoa beans.
The concern is significant because Ghana’s cocoa sector supports approximately 800,000 farming families, making it one of the country’s most important agricultural industries and a major source of export earnings.
Industry analysts note that delayed payments also increase the temptation for some farmers to sell through informal channels or reduce investment in maintaining cocoa farms, ultimately affecting future production.
A Sector Under Financial Pressure
The payment crisis reflects wider financial pressures confronting Ghana’s cocoa industry.
Earlier this year, Finance Minister Dr. Cassiel Ato Forson announced significant reforms aimed at restoring financial stability within COCOBOD.
Among the reforms is a new domestic cocoa bond financing model designed to reduce dependence on expensive syndicated international loans while linking cocoa financing more closely to actual seasonal sales.
Government also announced plans to introduce legislation that would ensure cocoa farmers receive at least 70 percent of the Free-on-Board (FOB) export price, aligning Ghana’s pricing system with existing policy objectives while improving transparency.
Those reforms came after global cocoa prices, which had reached historic highs during 2024, later declined sharply, creating additional financial strain throughout the cocoa value chain.