By Benjamin Nii Nai Anyetei
The Licensed Cocoa Buyers Association of Ghana (LICOBAG) has warned that funding and sales challenges in the cocoa industry are having serious consequences for both farmers and Licensed Buying Companies (LBCs).
According to the Association, delays in payments for cocoa delivered to port and limited access to funding have resulted in cocoa remaining unsold at the farm level, with some produce stored under poor conditions that pose quality risks.
LICOBAG said the funding crisis began in the 2023/2024 season when COCOBOD failed to secure its usual syndicated loan facility, forcing LBCs to rely on high-interest bank loans to pay farmers.
Although farmers were paid in full, delayed reimbursement to LBCs pushed many buyers into heavy debt.
The Association said subsequent funding models introduced in the 2024/2025 and 2025/2026 seasons did not fully resolve the problem, with some LBCs unable to access funding and others unable to secure off-takers for their cocoa.
LICOBAG warned that inadequate funding has also contributed to increased cocoa smuggling and rising tensions at the farm level, including reported incidents of farmers detaining purchasing clerks over unpaid cocoa.
To protect farmers and stabilise the value chain, LICOBAG urged government to urgently determine the farm-gate price of cocoa, ring-fence funds meant for cocoa purchases, and improve coordination between COCOBOD and industry stakeholders.
