The Ghana Cocoa Board (COCOBOD) faces mounting financial pressure as high producer prices, legacy forward sales contracts and retreating international buyers leave cocoa beans unsold and some farmers unpaid, Chief Executive Dr Ransford Anertey Abbey has disclosed.
Dr Abbey stated at a press briefing on Friday, February 7, 2026, that the cocoa crop in the 2024-25 season was not financed through the traditional syndicated loan structure but directly by international buyers. The arrangement emerged after COCOBOD failed in 2022 to fully service interest and principal on its cocoa bills, weakening lender confidence.
The current strain intensified due to forward sales contracts signed at historically low prices. COCOBOD committed to supply approximately 333,767 tonnes of cocoa at roughly 41,600 cedis per tonne, reflecting market conditions when contracts were executed. When global prices surged afterward, buyers holding those contracts opted to finance the crop directly to protect their positions.
Market conditions have since reversed sharply. Global cocoa prices fell to around 4,200 United States dollars per tonne on February 6, 2026, down 57 percent compared to the same period last year. Meanwhile, Ghana’s farmgate price remains elevated at the equivalent of about 80,640 cedis per tonne, based on pricing decisions taken when exchange rates and global prices stood significantly higher.
The mismatch between domestic producer prices and international trading levels has left Licensed Buying Companies (LBCs) holding beans without off-takers, while others have delivered cocoa but await payment. Dr Abbey indicated that COCOBOD has sold cocoa worth more than 8.5 billion cedis so far, with a smaller portion still seeking buyers after some traders shifted purchases to cheaper origins including Ivory Coast.
The Minority Caucus in Parliament called on February 5, 2026, for immediate settlement of outstanding payments exceeding 10 billion cedis owed to cocoa farmers and LBCs. Isaac Yaw Opoku, Ranking Member on the Food, Agriculture and Cocoa Affairs Committee, warned that delays have worsened farmers’ living conditions and threaten industry stability.
Jerome Kwaku Sam, Head of Corporate Communications at COCOBOD, stated the board has made substantial payments in recent months including over 6 billion cedis in November 2025, over 5 billion cedis in December, 6 billion cedis in January 2026, and over 620 million cedis in early February. The payments enable LBCs to settle outstanding amounts with farmers.
Dr Abbey dismissed social media claims that funds meant for farmers had been diverted to vehicle purchases. While acknowledging that pickup trucks and other vehicles had been ordered, the chief executive stated the acquisitions were funded from internally generated revenues to address operational gaps across cocoa-growing districts.
Beyond immediate challenges, Dr Abbey indicated these difficulties highlight structural weaknesses in the cocoa financing system. For more than three decades, syndicated loans required COCOBOD to pledge large volumes of raw cocoa as collateral, limiting Ghana’s ability to expand local processing and value addition.
The government and Ministry of Finance are developing a new funding model aimed at reducing reliance on raw bean exports. The structure is expected to take effect from the 2026-27 season. Dr Abbey appealed for patience from farmers while COCOBOD works to settle all payments.
International cocoa prices settled sharply higher on Thursday, February 6, 2026, after chocolate maker Hershey forecast better-than-expected outlook for 2026. The development eased concerns about cocoa demand and fueled short covering in cocoa futures markets.
Consulting firm StoneX forecasted a global cocoa surplus of 287,000 metric tonnes in the 2025-26 season and 267,000 metric tonnes for 2026-27. The International Cocoa Organization (ICCO) reported on January 23, 2026, that global cocoa stocks rose 4.2 percent year on year to 1.1 million metric tonnes.
The Parliamentary Committee on Food, Agriculture and Cocoa Affairs met COCOBOD officials on February 6, 2026, to discuss operational challenges and proposed reforms. The reforms include a new cocoa pricing mechanism, revised funding model and stronger value-addition strategy targeting enhanced farmer incomes and elimination of persistent under-recoveries.
