Ghana cocoa crisis deepens as farmers remain unpaid amid price mismatch, disrupting buyers and threatening global chocolate supply chains
TOI GLOBAL DESK | TOI GLOBAL | Mar 19, 2026, 22:44 IST
Cocoa beans rot and West African farmers seek other options after commodity crash
Ghana's cocoa industry is in turmoil as buyers grapple with a challenging situation. The government has established a minimum payment for farmers that exceeds current global cocoa prices, leading to financial difficulties for buyers. Consequently, many farmers are left waiting for payments, and warehouses are overflowing with unsold cocoa, creating significant disruptions across the entire supply chain.
Ghana's licensed cocoa buyers are struggling to purchase beans from farmers, even after the government significantly reduced the fixed price for the commodity. This pricing mismatch, where the new farmer price remains higher than global market rates, is creating a disincentive for international traders and leaving unsold cocoa at ports. Sources within the buying firms indicate a lack of available funds, with recent disbursements from the cocoa regulator, Cocobod, being directed towards existing debts owed to farmers for previously delivered beans.
The government recently cut the fixed farmer price by nearly 30%, setting it at 41,392 cedis ($3,797) per metric ton. However, this new price is still above the global market price of approximately $3,200 per metric ton. This situation has previously led to a substantial surplus of at least 50,000 tons of unsold cocoa beans accumulating at ports.
Sources from three licensed cocoa buying companies (LBCs), including one from the state-owned Produce Buying Company, have revealed that buyers are facing a liquidity crisis. They stated that Cocobod's recent fund disbursements have been allocated to settle outstanding debts for beans that have already been delivered.
Cocobod has announced that it disbursed 4.2 billion cedis ($385.32 million) to LBCs to clear arrears owed to farmers since November. Despite this announcement, farmers and purchasing clerks report that the funds have not yet reached them.
"It has been four months now and some of us have still not received payment for cocoa we delivered," said Ebenezer Asiful, a 54-year-old cocoa farmer. "We don't know why the government has decided to treat farmers this way."
Farmer Joseph Prenya shared that many LBC purchasing clerks are refusing to accept more beans due to the financial constraints.
"What we do now is move from one town to another to find out which purchasing clerk is open and has cash before we bring our beans," Prenya said.
With the farmer prices continuing to exceed global market rates, opposition lawmakers have cautioned that Cocobod might be compelled to implement another price reduction. Farmers have indicated their strong opposition to any further cuts.
Jerome Sam, Cocobod's Head of Public Affairs, acknowledged that while some buyers are experiencing liquidity issues, others remain actively engaged in purchasing. He asserted that the farmer price would not be lowered again this season, irrespective of global price fluctuations.
The chief executive of Cocobod recently stated at a briefing that the organization is facing mounting debts.
A cocoa trade executive from a global agri-commodities trade house commented that the regulator is dealing with both unpaid bills and new liabilities. These liabilities are expected to continue accumulating as long as the farmer price remains higher than global prices.
A Ghanaian association representing LBCs has previously disclosed owing local banks approximately $750 million in debts. These debts were incurred to prefinance cocoa purchases. The association has urged its members to prioritize settling their obligations to farmers before repaying the banks.
The government recently cut the fixed farmer price by nearly 30%, setting it at 41,392 cedis ($3,797) per metric ton. However, this new price is still above the global market price of approximately $3,200 per metric ton. This situation has previously led to a substantial surplus of at least 50,000 tons of unsold cocoa beans accumulating at ports.
Sources from three licensed cocoa buying companies (LBCs), including one from the state-owned Produce Buying Company, have revealed that buyers are facing a liquidity crisis. They stated that Cocobod's recent fund disbursements have been allocated to settle outstanding debts for beans that have already been delivered.
Cocobod has announced that it disbursed 4.2 billion cedis ($385.32 million) to LBCs to clear arrears owed to farmers since November. Despite this announcement, farmers and purchasing clerks report that the funds have not yet reached them.
"It has been four months now and some of us have still not received payment for cocoa we delivered," said Ebenezer Asiful, a 54-year-old cocoa farmer. "We don't know why the government has decided to treat farmers this way."
Farmer Joseph Prenya shared that many LBC purchasing clerks are refusing to accept more beans due to the financial constraints.
"What we do now is move from one town to another to find out which purchasing clerk is open and has cash before we bring our beans," Prenya said.
With the farmer prices continuing to exceed global market rates, opposition lawmakers have cautioned that Cocobod might be compelled to implement another price reduction. Farmers have indicated their strong opposition to any further cuts.
Jerome Sam, Cocobod's Head of Public Affairs, acknowledged that while some buyers are experiencing liquidity issues, others remain actively engaged in purchasing. He asserted that the farmer price would not be lowered again this season, irrespective of global price fluctuations.
The chief executive of Cocobod recently stated at a briefing that the organization is facing mounting debts.
A cocoa trade executive from a global agri-commodities trade house commented that the regulator is dealing with both unpaid bills and new liabilities. These liabilities are expected to continue accumulating as long as the farmer price remains higher than global prices.
A Ghanaian association representing LBCs has previously disclosed owing local banks approximately $750 million in debts. These debts were incurred to prefinance cocoa purchases. The association has urged its members to prioritize settling their obligations to farmers before repaying the banks.