Victus Dzah
The Chamber of Cocoa Marketers Ghana has warned that the cocoa industry could face difficulties at the start of the 2026/27 season if the Ghana Cocoa Board (Cocobod) fails to settle nearly GH¢4 billion owed to Licensed Buying Companies (LBCs).
According to the Chamber, the outstanding debt is putting LBCs under severe financial pressure and could undermine their ability to secure fresh funding to purchase cocoa from farmers when the new season opens.
The Chief Executive Officer of the Chamber of Cocoa Marketers Ghana, Victus Dzah, said the companies were already struggling to service loans contracted to finance cocoa purchases in previous seasons while waiting for Cocobod to pay their outstanding claims.
“Cocobod has not paid us. How are we going to go back to the field to buy cocoa?” he asked.
Mr. Dzah said some LBCs were being forced to borrow at interest rates of as high as 40 percent to sustain their operations, warning that prolonged delays in payments could push more companies out of business.
“You buy the cocoa, and in seven months, you cannot pay. You are totally out of the business. Some companies have collapsed because of this,” he said.
He said the financial difficulties facing LBCs could affect the smooth procurement of cocoa in the new season, particularly if the companies were unable to access sufficient working capital.
The Chamber also raised concerns about Ghana’s new cocoa pricing mechanism, which guarantees farmers 70 percent of the Free on Board (FOB) price.
Mr. Dzah cautioned that a significant increase in the farmgate price could widen the price differential with neighbouring Côte d’Ivoire and create incentives for cocoa to be moved across the border.
Côte d’Ivoire has opened its 2026/27 cocoa season at 1,200 CFA francs per kilogramme, according to the Chamber.
“If Ghana should hike its price by this percentage, then already you must know there will be huge implications in terms of price differential between Ghana and Côte d’Ivoire,” he said.
He warned that a substantial price disparity between the two countries could increase the risk of cocoa smuggling, recalling that Ghana lost significant volumes of cocoa to Côte d’Ivoire when prices were higher there during the 2023/24 season.
Mr. Dzah therefore called for measures to be put in place to contain the anticipated increase in cocoa smuggling and protect the quality of Ghana’s cocoa.
The Chamber is also demanding clarity from Cocobod on how it intends to finance cocoa purchases during the 2026/27 season.
Cocobod has announced plans to raise funds through commercial paper and bonds, but Mr. Dzah said LBCs had not been adequately engaged on how the proposed financing arrangement would operate.
“We are in the second week of September. Nobody has called us to tell us anything about what is going on. We don’t know how the funding system is going to be like,” he said.
A Business Desk Report