The Ghana Cocoa Board (COCOBOD) has begun disbursing funds to Licensed Buying Companies (LBCs) to enable them to settle outstanding arrears owed to cocoa farmers for beans already delivered.
The move follows weeks of concern among cocoa farmers and industry players over delays in payments, which had put pressure on household incomes and disrupted normal operations within the cocoa supply chain. By releasing funds to the LBCs, COCOBOD aims to ensure that farmers receive payments due them for cocoa beans supplied during the ongoing season.
Sources within the cocoa sector say the payments are intended to stabilise purchasing activities and restore confidence among farmers, many of whom rely heavily on prompt payment to support their livelihoods and prepare for subsequent production cycles. Delays in payments had also strained relationships between farmers and LBCs, as the buying companies depend on COCOBOD reimbursements to meet their obligations.
COCOBOD’s action is expected to ease tensions in cocoa-growing communities and support continuity in cocoa deliveries, at a time when the sector remains critical to Ghana’s foreign exchange earnings and rural employment. Industry observers note that timely payment to farmers is essential to maintaining productivity and preventing disruptions such as side-selling or reduced farm investment.
While COCOBOD has not publicly disclosed the total amount released or the full schedule for clearing all arrears, stakeholders say the commencement of payments signals an effort to address liquidity challenges within the cocoa marketing system.
The cocoa sector has faced mounting financial pressure in recent years, driven by high debt levels, rising production costs and fluctuating global cocoa prices. Analysts argue that sustaining regular payments to farmers will be key to preserving confidence in Ghana’s cocoa marketing framework and safeguarding the long-term health of the industry.
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