BTA2023 The Ghana Cocoa Board (COCOBOD) has disbursed GH¢1.09 billion to cocoa farmers through Licensed Buying Companies (LBCs), easing payment pressures amid ongoing reforms in Ghana’s cocoa sector.
The payments, made in two tranches between last Wednesday and yesterday, cover 50,000 tonnes of cocoa committed under the 2024/2025 crop season. According to COCOBOD’s Acting Head of Public Affairs, Jerome K. Sam, GH¢237 million was released in the first tranche, with GH¢854 million paid in the second.
Buyer-Financing Model in Action
The disbursement relates to committed beans under the new buyer-financing model, where buyers remit funds for cocoa purchases before payment to farmers. However, while more than 530,000 tonnes of the current crop have been sold, about 50,000 tonnes remain unsold, and some delivered beans are yet to be paid for.
COCOBOD expects to make additional payments in the coming days as liquidity improves.
Forward Sales and Exposure
At a parliamentary press conference, Finance Committee Chairman Isaac Adongo revealed that at the start of the 2025/2026 cocoa season, COCOBOD had forward-sold approximately 530,000 tonnes — about 82% of the projected 650,000 tonnes — at an average Free on Board (FOB) price near $7,200 per tonne.
This left roughly 18–20% of projected output unhedged against market volatility.
However, the global cocoa market has since experienced a sharp correction. World prices have fallen from around $7,200 per tonne to nearly $4,100 per tonne, creating liquidity constraints and rendering Ghana’s cocoa less competitive.
Farmgate Price Adjustment
Last week, the Producer Price Review Committee (PPRC) announced revised farmgate prices for the remainder of the 2025/2026 season, pegging cocoa at:
- GH¢41,392 per tonne
- GH¢2,587 per 64kg bag
Although lower than the GH¢58,000 per tonne announced in October 2025, the new rate represents 90% of the achieved FOB export price, compared to the previous 70% benchmark.
The adjustment was aimed at cushioning farmers while aligning producer prices with falling global trends.
Reform Agenda and Farmer Engagement
An extraordinary Cabinet meeting last week recommended immediate payment of arrears and outlined structural reforms to stabilise the sector.
COCOBOD says it has begun engaging cocoa farmer leadership and will extend consultations to regional and district levels to explain the economic dynamics behind the price revision.
“We want our farmers to understand the dynamics and appreciate the happenings in the industry so that they can appreciate the causes of the price reduction,” Mr Sam said.
With global price volatility reshaping the cocoa market, the sector now faces a delicate balancing act — maintaining farmer income stability while preserving Ghana’s competitiveness in international markets.
