Cocoa farmers in Ghana say prolonged payment delays—stretching up to six months—are preventing them from harvesting a promising mid-crop season, despite improved rainfall and strong yields.
The situation is affecting thousands of farmers across the country, where the cocoa sector supports an estimated 800,000 farming families.
According to the Ghana Cocoa Cooperatives Association, many farmers lack the funds needed to hire labour or transport harvested beans.
Vice President Theophilus Tamakloe described the situation as dire:
“I have cocoa on the trees that needs to be harvested, but there is no money to even do that.”
He added that the challenge is widespread among the association’s more than 340,000 members.
Tamakloe himself has 14 bags of cocoa (about 896 kg) stored but has refused to sell them on credit, insisting on immediate payment from Licensed Buying Companies (LBCs).
Farmers Demand Instant Payment
Another farmer, Abdulai Adoswin, reported higher yields this season—300 bags compared to 190 bags last year—but warned that further gains depend on prompt payment before the season ends around August or September.
Currently, about 65 Licensed Buying Companies (LBCs) operate in Ghana, acting as intermediaries between farmers and the regulator.
COCOBOD Responds Amid Funding Concerns
The Ghana Cocoa Board (COCOBOD) says it has been releasing funds to LBCs to settle outstanding payments dating back to November.
However, some LBCs dispute this claim, stating they are still awaiting payment for cocoa already supplied and sold.
“We are still waiting to be paid and I really don’t know what is going on anymore,” one source said.
COCOBOD has yet to provide a detailed update, indicating it is reviewing the matter.
Sector Faces Broader Challenges
The payment delays come at a time when Ghana’s cocoa sector is already under strain due to:
Declining production in recent seasons
Diseases affecting cocoa trees
Ageing farms
Illegal mining activities
Erratic weather patterns
Data from the Bank of Ghana shows cocoa export earnings dropped by about 20% year-on-year, reaching 956.3 million cedis ($86 million) in February.
Falling Global Prices Add Pressure
Although improved rainfall has boosted the mid-crop, global cocoa prices have fallen sharply—dropping nearly 75% from record highs in late 2024—further squeezing farmers’ incomes.
While the current mid-crop offers hope for recovery, farmers warn that without immediate payments, much of the cocoa could remain unharvested—risking further losses for both producers and the national economy.
