Ghana’s Cocoa Farmers Face Severe Payment Delays Since November 2025

Introduction

Ghana’s cocoa sector, a cornerstone of the nation’s economy, is facing a deepening crisis as thousands of cocoa farmers report not receiving payments for beans sold since November 2025. This payment delay has left many farmers struggling to meet basic daily expenses, raising concerns about the sustainability of Ghana’s cocoa industry and the livelihoods of those who depend on it.

Key Points

Background

Ghana is the world’s second-largest cocoa producer, with the crop serving as a vital source of income for hundreds of thousands of smallholder farmers. The cocoa sector contributes significantly to Ghana’s foreign exchange earnings and employs approximately 800,000 farm families across the country.

Traditionally, COCOBOD managed the entire cocoa value chain, from financing farmers to exporting beans. However, for the 2024/2025 cocoa season, Ghana implemented a new financing structure that shifted pre-financing responsibilities from COCOBOD to multinational buyers.

Analysis

The New Financing Structure

Under the revised system, the process works as follows:
1. Farmers sell beans to licensed buying companies (LBCs)
2. LBCs sell to COCOBOD
3. COCOBOD sells to multinational buyers

This system was designed to reduce COCOBOD’s financial burden and improve efficiency. However, it has created new vulnerabilities, particularly when international cocoa prices fluctuate or when buyers are reluctant to provide advance payments.

Economic Pressures

The situation has been exacerbated by several factors:
– **Price volatility**: While Ghana set its farmgate price at 48,000 cedis per metric tonne (about $4,640), international prices have hovered around $4,700 per tonne, narrowing margins
– **Buyer reluctance**: Multinational investors have been hesitant to pay deposits of at least 60% of forward contract values at the season’s start
– **Production surplus**: Better-than-expected production has left Ghana with a significant stockpile of unsold beans

Impact on Farmers

The payment delays have created severe hardships for cocoa farmers:
– Many cannot afford basic necessities like food, healthcare, and education for their children
– Some licensed buying companies have become unresponsive, leaving farmers without information about payment timelines
– The uncertainty threatens to push more farmers toward illegal activities like smuggling

Practical Advice for Affected Farmers

If you’re a cocoa farmer affected by payment delays, consider these steps:

1. **Document everything**: Keep detailed records of all cocoa sales, including dates, quantities, and the companies involved
2. **Form cooperatives**: Join or establish farmer cooperatives to strengthen your collective bargaining power
3. **Seek alternative income**: Explore temporary income sources while waiting for payments
4. **Contact local authorities**: Report unresponsive buying companies to local agricultural extension officers
5. **Stay informed**: Follow updates from COCOBOD and reputable news sources about the payment situation

FAQ

Conclusion

The payment crisis facing Ghana’s cocoa farmers represents a significant challenge to one of the country’s most important economic sectors. While the new financing structure was intended to improve efficiency, its implementation has revealed vulnerabilities that are now impacting the very farmers who form the backbone of the cocoa industry.

The situation requires urgent attention from all stakeholders—COCOBOD, the government, licensed buying companies, and international buyers—to develop sustainable solutions that protect farmers’ livelihoods while maintaining Ghana’s position as a leading cocoa producer. Without swift action, the crisis could have long-lasting repercussions for Ghana’s economy and the global cocoa supply chain.