Cocoa farmers in Ghana say payment delays of up to six months are preventing them from harvesting a rain-boosted mid-crop, despite strong yields in the world’s second-largest producer.
Farmers told Reuters this week that the delays have drained their operating funds, leaving them unable to hire labour or cover harvesting costs in Ghana, where the cocoa sector supports the livelihoods of some 800,000 farming families.
“I have cocoa on the trees that needs to be harvested, but there is no money to even do that,” said Ghana Cocoa Cooperatives Association Vice President Theophilus Tamakloe, adding it was similar for the group’s more than 340,000 members.
Tamakloe said he has 14 freshly harvested bags weighing 896 kg (nearly a metric ton) in his warehouse, which he has refused to hand over to buyers on credit.
“I will only release them to an LBC (Licensed Buying Company) that pays me instantly,” he said. There are currently about 65 LBCs operating in Ghana.
Farmer Abdulai Adoswin said he had already harvested 300 bags this season, up from 190 bags at the same point last year, but warned that further gains depended on prompt payment before the season closes in August or September.
REGULATOR SAYS IT IS DISBURSING FUNDS
Ghana’s cocoa regulator, COCOBOD, has said it has been disbursing funds to LBCs to clear outstanding payments dating back to November. But two LBC sources said they are still waiting for it to pay for beans already supplied and sold.
“My understanding is that COCOBOD has sold all the beans supplied for the 2025/26 season,” said one of the sources, who asked not to be named due to the sensitivity of the matter.
“We are still waiting to be paid and I really don’t know what is going on anymore,” the source added.
COCOBOD did not immediately respond to a request for comment on the status of funds, saying it would look into the matter.
Ghana has been grappling with a protracted liquidity crisis that has dogged the sector for months, forcing the government to slash the fixed price paid to farmers for their beans.
The West African country has also suffered declining cocoa output in recent seasons due to disease, ageing trees, illegal mining and erratic weather.
Bank of Ghana data shows cocoa exports fell by about 20% year-on-year to 956.3 million cedis ($86 million) in February.
Although the improved mid-crop cocoa yields offer some relief, they come as prices for the chocolate ingredient have dropped by nearly 75% from record highs in late 2024.
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Source: www.myjoyonline.com