‘COCOBOD GH¢4bn Debt Threatens New Season Cocoa Purchases’

The Chamber of Cocoa Marketers Ghana has warned that the cocoa industry may face challenges at the beginning of the 2026/27 season due to Cocobod's failure to pay nearly GH¢4 billion owed to Licensed Buying Companies (LBCs). This debt is causing financial strain on LBCs and threatening their ability to secure funding for purchasing cocoa from farmers.

CEO of the Chamber, Victus Dzah, stated that the companies are already grappling with servicing loans used to finance cocoa purchases in previous seasons while awaiting Cocobod's payments. Dzah noted that some LBCs have resorted to borrowing at interest rates up to 40 percent to keep their operations running, warning that ongoing delays in payments could force more companies out of business.

The financial difficulties faced by LBCs could impact the smooth procurement of cocoa during the new season, especially if insufficient working capital is available. Additionally, the Chamber has raised concerns about Ghana's new cocoa pricing mechanism, which guarantees farmers 70% of the Free on Board (FOB) price. They fear that a significant increase in the farmgate price could widen the price gap with neighboring Côte d’Ivoire, potentially driving cocoa smuggling across the border.

Côte d’Ivoire has already started its 2026/27 cocoa season at a price of 1,200 CFA francs per kilogramme. Dzah cautioned that a substantial price disparity could exacerbate the risk of cocoa smuggling, recalling past instances where Ghana lost significant quantities of cocoa to Côte d’Ivoire when prices were higher there. The Chamber is also seeking clarity from Cocobod on its financing plans for the 2026/27 season, as the companies have not been adequately informed about the proposed financing arrangements.