Licensed cocoa buyers in Ghana are struggling with a severe liquidity shortage, leaving many farmers unable to sell their beans despite a recent government decision to reduce the fixed price for cocoa, industry sources told Reuters.
The Ghana Cocoa Board (COCOBOD), the state agency that sets the price for farmers, lowered the fixed farmgate price earlier this month by nearly 30 percent to 41,392 cedis (around $3,797) per metric ton. The adjustment aimed to bring domestic prices closer to global market levels, which currently hover around $3,200 per ton, and to stimulate purchasing activity.
However, several licensed buying companies, including the state-owned Produce Buying Company, report that they still lack the funds needed to buy cocoa beans from farmers. Sources indicate that recent funds provided by COCOBOD were used to settle outstanding debts for previously delivered beans rather than to finance new purchases.
COCOBOD has stated that it released 4.2 billion cedis (approximately $385 million) to help clear arrears owed to farmers since November. Despite this, many farmers and purchasing clerks say the funds have not yet reached producers, contributing to delays and frustration in cocoa-growing communities.
Due to the cash shortage, many licensed buying companies have begun refusing new deliveries. With buyers unable to pay for recently harvested beans, tens of thousands of tonnes of cocoa remain unsold at collection centers and ports.
The financing challenges are compounded by high levels of debt and structural pressures within the cocoa sector. Licensed buyers are reported to owe local banks hundreds of millions of dollars, raising concerns about the broader financial stability of the supply chain.
Farmers across Ghana’s cocoa regions report growing frustration. Many delivered their crops weeks or months ago and are still waiting for payment. Some have had to travel long distances to find buyers willing to pay cash, while others struggle to meet basic living expenses.
COCOBOD has indicated that it will not reduce prices further this season, even as opposition lawmakers warn that additional cuts may become necessary if financial pressures persist.
The situation highlights the fragile connection between fixed domestic pricing systems and volatile global markets. Ghana and its neighbor Côte d’Ivoire, which together produce about half of the world’s cocoa, have both experienced stock buildup and slower sales in recent months due to mismatches between guaranteed prices and global demand.
