Ghana Cocoa Board begins payments to LBCs to clear farmer arrears after months of delays 

GHANA – The Ghana Cocoa Board (COCOBOD) has announced it has commenced payments to Licensed Buying Companies (LBCs) to enable them to settle outstanding amounts owed to cocoa farmers for beans already delivered, following months of payment delays across the sector. 

The move comes amid mounting concerns that prolonged arrears have pushed farmers into financial hardship and threatened the sustainability of Ghana’s cocoa value chain. 

The issue gained national attention on February 5, when the Minority in Parliament warned that delayed payments were disrupting farm operations and weakening confidence in the industry. 

According to the Minority, COCOBOD currently owes LBCs more than GH¢10 billion, (US$690 million), for cocoa already taken over. The cash crunch has constrained the ability of buying companies to promptly pay farmers, leading to widespread complaints and stalled cocoa purchases in some regions. 

COCOBOD has attributed the delays to difficulties in securing syndicated financing for the 2025/26 crop season, which forced the Board to rely on alternative funding arrangements with international cocoa buyers.  

Under these arrangements, LBCs pre-financed cocoa purchases, with COCOBOD reimbursing them at a later date. 

The Board said it has made substantial disbursements over recent months to ease the situation and ensure farmers receive their payments. 

“In November, we paid over GH¢6 billion, in December more than GH¢5 billion, and in January another GH¢6 billion. This month alone, we have paid over GH¢620 million, and we are continuing to pay the LBCs so they can clear outstanding payments to farmers,” said Jerome Kwaku Sam, Head of Corporate Communications at COCOBOD. 

The November, December and January payments together total more than GH¢17 billion (US$1.17 billion), while the February disbursement of GH¢620 million (US$43 million), based on prevailing exchange rates. 

Sam added that COCOBOD is working closely with the current administration to develop a more sustainable financing model for the cocoa sector to prevent a recurrence of such delays.  

He stressed that the Board remains committed to timely farmer payments and the long-term stability of the industry. 

The announcement follows threats by cocoa farmers earlier this week to stage a nationwide demonstration over unpaid arrears dating back to November 2025.  

In October 2025, the government set the cocoa farmgate price at GH¢58,000 per metric tonne (US$4,000), or approximately GH¢3,228 per 64-kilogramme bag (US$220). 

The price adjustment coincided with a new cocoa financing regime after COCOBOD failed to secure syndicated loans.  

Under the revised structure, farmers sell beans to LBCs, which sell to COCOBOD, while payment delays have forced several LBCs to suspend purchases. 

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