Cocoa farmers across several producing regions in Ghana are increasingly frustrated and financially strained due to prolonged delays in receiving payment for beans supplied since November 2025, despite repeated assurances from the Ghana Cocoa Board (COCOBOD).
Farmers who spoke to JoyNews Research from various cocoa-growing communities confirmed that payments for cocoa delivered several months ago remain outstanding.
“We are yet to receive payment for beans sold since November last year. This is the first time I have experienced such a long delay,” one farmer told the team.
Another farmer lamented that some Licensed Buying Companies (LBCs) have become unresponsive.
“Some of the buyers have switched off their phones, and we have no clear information on when payments will be made,” he said.
The situation is forcing many farmers into desperate measures. One farmer revealed that approximately 30% of cocoa beans sold to purchasing clerks remain unpaid, pushing some to consider selling their farms to illegal gold miners (galamsey operators) to survive.
“It’s a desperate situation, and something needs to be done quickly,” he added.
Root Causes of the Payment Crisis
In October 2025, Ghana set the farmgate price at GH¢58,000 per metric tonne (approximately $4,640), a 12% increase from the previous season. However, international cocoa prices are currently trading around $4,700 per tonne, narrowing margins significantly.
The restructured pre-financing system introduced for the 2024/2025 cocoa season shifted responsibility for funding purchases from COCOBOD to international traders. Under the new arrangement:
- Farmers sell to LBCs
- LBCs sell to COCOBOD
- COCOBOD sells to international buyers
Sources familiar with the situation told Reuters that better-than-expected production, combined with traders’ reluctance to pay the required 60% deposit on forward contracts at the start of the season, has left Ghana with a sizeable stockpile of unsold beans. The exact volume remains unquantified.
The previous system relied on syndicated loans raised by COCOBOD and disbursed to LBCs. However, funds have been severely constrained since the 2023/2024 crop season due to surging interest rates and concerns over Ghana’s ability to deliver without defaulting.
Industry insiders say the recent decline in global prices has made it difficult for COCOBOD to secure advance payments from traders, forcing the central government to step in with emergency funding.
“The bitter truth is that there is no money to fund the purchases and farmers are bearing the cost,” another farmer and aggregator told JoyNews Research.
Broader Implications and Smuggling Risk
Ghana is estimated to lose between 100,000 and 150,000 metric tonnes of cocoa annually to smuggling. Prolonged payment delays could significantly worsen this trend in the coming season, as farmers seek immediate cash from cross-border buyers offering better upfront payment.
Meanwhile, positive news from the Bank of Ghana shows cocoa export earnings have more than doubled compared to the previous season, reaching nearly $4 billion — the highest level since the COVID-19 pandemic.
Despite these record earnings, the liquidity crisis at the farmgate level highlights structural challenges in the cocoa value chain financing model.
Farmers and aggregators are calling for urgent intervention to clear outstanding payments and restore confidence in the system ahead of the next crop season.
