By: Franklin ASARE-DONKOH
Ghana’s cocoa industry, once a global leader, is currently being squeezed by a perfect storm of internal mismanagement and external market volatility.
Since November 2025, thousands of farmers across the country have delivered their beans without receiving payment.
The Ghana Cocoa Board (COCOBOD), led by CEO Dr. Ransford Anertey Abbey, recently issued a formal apology to farmers, admitting to a severe liquidity crisis.
To address this critical issue, the Minister for Government Communications, Mr. Felix Kwakye Ofosu, has announced through a post on X that President John Dramani Mahama has scheduled an emergency Cabinet session for Wednesday, February 11, 2026, to find a lasting solution to issues affecting Ghana’s cocoa industry.
The urgent meeting comes as the cocoa sector faces multiple pressures, including severe financing challenges that have delayed payments to farmers and value chain actors, heightening concerns about the industry’s stability and future.
The move comes amid growing alarm over liquidity shortfalls and delayed payments to cocoa farmers and Licensed Buying Companies (LBCs), which industry stakeholders warn could destabilise the sector if not swiftly addressed.
According to the Licensed Cocoa Buyers Association of Ghana (LICOBAG), the government needs to secure emergency financing to buy an estimated 300,000 tonnes of cocoa beans through September to avoid a potential collapse.
The Ghana Cocoa Board (COCOBOD), which regulates pricing, purchases, and export of cocoa, has acknowledged the funding gap and is working with the Ministry of Finance on possible solutions, including abandoning the long‑standing syndicated loan financing model that underpins cocoa purchases.
The “Liquidity Trap”: Farmers Left Unpaid
Buyer Retreat: Under a new “80/20” financing model, COCOBOD expected international traders to pre-finance purchases. However, as global prices plummeted from $6,400 to approximately $4,200 per tonne, traders became reluctant to pay the high upfront sums sought by Ghana.
While over 530,000 tonnes are said to have been sold, roughly 50,000 metric tonnes remain at the ports without buyers because Ghana’s cocoa has become “too expensive” compared to competitors like Côte d’Ivoire and Ecuador.
The emergency Cabinet session will bring together ministers, sector experts, and key government officials to chart a course for immediate interventions, including measures to ensure timely payments to farmers, secure financing for cocoa purchases, and shore up confidence in the value chain.
