Ghana Cocoa Crisis: Farmers Report Months of Unpaid Produce Amid COCOBOD Dispute

Date: January 22, 2026 | Category: Agriculture / Economy

Introduction

Ghana’s cocoa sector, a vital pillar of the national economy, is facing a significant disruption as farmers across key growing regions report severe delays in payment for their produce. Reports indicate that some growers have not received compensation for beans sold as far back as November 2025. This financial stalemate threatens not only the livelihoods of thousands of farmers but also the stability of the global cocoa supply chain.

While farmers warn that this crisis could force them to abandon the crop or sell their farms to illegal miners, the Ghana Cocoa Board (COCOBOD) has publicly denied direct responsibility for the payment delays. This article provides a comprehensive analysis of the situation, examining the perspectives of both the farmers and the regulatory body, while offering practical advice and background context on the complex cocoa value chain.

Key Points

Background

To understand the current crisis, it is essential to grasp the structure of Ghana’s cocoa marketing system. Unlike open-market economies, Ghana’s cocoa is a state-controlled commodity.

The Role of COCOBOD

The Ghana Cocoa Board (COCOBOD) is the statutory body responsible for the development, marketing, and sale of cocoa in Ghana. Historically, COCOBOD secures pre-financing from international banks and buyers (offtakers) against future cocoa harvests. This financing is then channeled to Licensed Buying Companies (LBCs), which are private entities authorized to purchase beans directly from farmers.

The Value Chain and Payment Structure

When a farmer sells cocoa, the transaction typically occurs at a local buying point. The LBC is supposed to pay the farmer immediately or within a short credit period. The LBC then sells the beans to COCOBOD or directly to exporters under COCOBOD contracts. The revenue from these sales is used to repay the financiers. If there is a break in this chain—such as a delay in international payment or a liquidity crunch at the LBC level—the farmer is often the first to feel the impact.

Economic Significance of Cocoa in Ghana

Cocoa is Ghana’s second-largest foreign exchange earner after gold. The sector supports the livelihoods of over 800,000 registered farmers and millions more in ancillary industries. Therefore, any disruption in the payment cycle has ripple effects on the national economy, rural development, and food security.

Analysis

The current situation presents a clash of narratives between the producers and the regulator. Understanding the nuances of this dispute requires dissecting the arguments presented by both parties.

The Farmers’ Perspective: A Survival Crisis

For cocoa farmers like K. Badu, the issue is immediate and existential. In an interview on Nhyria FM’s Kro Yi Mu Nsem, he described the situation as “dire.” The core of the farmers’ grievance is the lack of liquidity. Farming inputs, labor costs, and household expenses are recurring.

Badu noted that approximately 30% of cocoa beans sold to purchasing clerks have not been paid for. This figure is alarming because it represents a significant portion of the harvest season’s output. The consequence is a forced divestment of assets. Farmers are reportedly selling their cocoa farms to illegal gold miners. This is not a strategic business decision but a desperate move to cover basic needs. Once land is sold for mining, it is often rendered infertile, permanently removing it from agricultural production.

COCOBOD’s Defense: The Chain of Responsibility

Jerome Sam, Head of Public Affairs at COCOBOD, expressed surprise at the farmers’ complaints. His rebuttal hinges on the mechanics of the cocoa financing model. COCOBOD’s defense rests on the following points:

• Indirect Purchase: COCOBOD does not physically buy cocoa from farmers. Their interaction is primarily with LBCs and international offtakers.
• Payment to LBCs: According to Mr. Sam, all LBCs that sold cocoa to international offtakers under COCOBOD contracts have received their payments.
• The “Non-Contract” Gap: The delay appears to affect LBCs that operate without international offtakers. These entities rely on their own financial resources to buy beans. If these LBCs face cash flow issues, they cannot pay farmers, even if COCOBOD has settled its obligations with other entities.

This defense suggests that the issue is not a failure of the central state financing model, but rather a liquidity crisis within specific private LBCs that operate outside the primary pre-financing agreements.

Socio-Economic Implications

The standoff has broader implications. If production drops due to farmer abandonment, Ghana risks losing its standing in the global cocoa market. This could lead to higher global chocolate prices and increased reliance on imports. Furthermore, the shift of farmland to illegal mining (galamsey) poses severe environmental risks, including deforestation and water pollution, which could have long-term health impacts on rural communities.

Practical Advice

For cocoa farmers currently facing payment delays, navigating the crisis requires proactive steps. While systemic issues must be addressed at the policy level, individual farmers can take measures to mitigate risks.

Documentation and Verification

Ensure all sales transactions are properly documented. Keep receipts from purchasing clerks and LBCs. If a payment is delayed, formal written complaints should be lodged with the local COCOBOD district office. Having a paper trail is crucial for any future claims or legal actions.

Financial Diversification

Over-reliance on a single cash crop increases vulnerability. Farmers should consider intercropping with food crops (like maize or plantain) or engaging in small-scale livestock rearing. This provides a buffer during lean periods when cocoa payments are delayed.

Engaging LBCs Directly

Farmers should seek clarity from the specific Licensed Buying Company they sold to. Understanding the LBC’s financial status can provide insight into whether the delay is temporary or systemic. If an LBC is insolvent, farmers may need to seek collective legal redress or report the entity to the Registrar General’s Department.

Community Advocacy

Collective bargaining power is stronger than individual complaints. Farmers can organize through cooperatives to petition local authorities and COCOBOD. Unified voices are more likely to attract media attention and prompt government intervention.

Avoiding Predatory Sales

Selling land to illegal miners should be viewed as a last resort. The environmental degradation caused by mining often makes land unusable for future generations. Farmers should explore alternative credit facilities or government support programs before divesting their primary agricultural assets.

FAQ

Conclusion

The dispute between cocoa farmers and COCOBOD highlights a critical fragility in Ghana’s agricultural financing structure. While farmers face immediate survival threats due to months of unpaid produce, the regulatory body points to complex supply chain mechanics involving LBCs and international offtakers.

Regardless of where the fault lies in the bureaucratic chain, the human cost is undeniable. If the “desperate situation” described by farmers is not urgently resolved, Ghana risks a long-term decline in cocoa production and an acceleration of environmental degradation through illegal mining. A transparent audit of LBC finances and a faster disbursement mechanism are essential to restoring confidence and ensuring the sustainability of the cocoa sector.

Sources

• Life Pulse Daily. (2026). Cocoa farmers declare months of unpaid produce; COCOBOD denies duty.
• Nhyria FM. (2026). Kro Yi Mu Nsem interview with K. Badu and Jerome Sam.
• Ghana Cocoa Board (COCOBOD). Official Statements on Cocoa Marketing and Financing.
• International Cocoa Organization (ICCO). Reports on Ghana Cocoa Sector Dynamics.