Chamber of Cocoa Marketers warns Cocobod’s GH¢4bn debt could disrupt cocoa purchases in new season
The Chamber of Cocoa Marketers Ghana has warned that Licensed Buying Companies (LBCs) could struggle to return to the farms to buy cocoa when the 2026/27 season opens if Cocobod fails to settle its outstanding debts.
The Chamber of Cocoa Marketers Ghana has expressed concern that Licensed Buying Companies (LBCs) could face difficulties in purchasing cocoa for the 2026/27 season due to Cocobod's failure to settle a significant debt. The Chamber claims Cocobod owes LBCs nearly GH¢4 billion, making it challenging for these companies to secure fresh credit while servicing loans from previous seasons.
CEO Victus Dzah stated that the debt is hindering LBCs' ability to obtain the necessary funds for the new season, as some are borrowing at interest rates of up to 40 percent while awaiting payment. Dzah also voiced worries about Ghana's new pricing mechanism, which guarantees farmers 70 percent of the FOB price, potentially widening the price gap with Côte d’Ivoire.
He warned that a considerable price difference could lead to cocoa smuggling, reminiscent of the situation in the 2023/24 season when Ghana lost substantial cocoa volumes to Côte d’Ivoire due to higher prices. Dzah emphasized the need for measures to prevent heavy smuggling and protect cocoa quality. He also called for clearer communication between Cocobod and LBCs regarding the funding structure for the upcoming season, as Cocobod has only recently announced plans to raise funds through commercial paper and bonds.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
