Omanghana
The Ghana Cocoa Board (COCOBOD) has released GH¢2.6 billion to Licensed Buying Companies (LBCs) to settle outstanding payments owed to cocoa farmers across the country and support ongoing purchases for the current crop season.
The disbursement, announced in an official statement on July 2, 2026, is aimed at addressing delayed payments, stabilizing the cocoa value chain, and ensuring farmers receive timely compensation for their produce.
Breakdown of the GH¢2.6 Billion Disbursement
COCOBOD explained that the funds have been strategically allocated to address both arrears and current operational needs within the cocoa purchasing system.
GH¢1.4 Billion to Clear Farmer Arrears
A significant portion of the allocation—GH¢1.4 billion—has been ring-fenced to settle outstanding debts owed to cocoa farmers. These arrears relate to beans supplied on credit through Licensed Buying Companies during previous purchasing cycles.
Funds for Ongoing Cocoa Purchases
The remaining balance will be used to support real-time cocoa purchases across all growing regions, ensuring smooth operations for the current 2025/2026 crop season.
COCOBOD said the intervention is intended to restore liquidity within the sector and improve confidence among farmers and buying agents.
Total Disbursement Reaches GH¢34.52 Billion
With the latest injection, COCOBOD’s total payments to Licensed Buying Companies since the start of the 2025/2026 cocoa season have risen to GH¢34.52 billion.
Officials say the continued funding reflects the government’s commitment to sustaining Ghana’s position as a leading global cocoa producer while maintaining stability within the sector’s financing structure.
Monitoring and Payment Enforcement Measures
To ensure that the funds reach intended beneficiaries, COCOBOD has introduced strengthened oversight and tracking systems across the cocoa supply chain.
Key measures include:
- Independent monitoring mechanisms to track fund flow to buying centers
- Verification systems to ensure payments are made at the local level
- Structured complaint channels allowing farmers to report delayed or missing payments through their respective Licensed Buying Companies
The Board has assured stakeholders that every farmer who legitimately sold cocoa through approved channels will receive payment in full.
Addressing Structural Challenges in the Cocoa Sector
The financial release comes at a time of ongoing adjustments within Ghana’s cocoa industry, which has faced liquidity pressures linked to debt obligations and contractual rollover arrangements.
Recently, the Government of Ghana announced a revision of the cocoa producer price for the remainder of the 2025/2026 season, setting it at GH¢2,587 per bag, down from an earlier benchmark of GH¢3,625 per bag.
Officials say the adjustment, combined with the clearance of GH¢1.4 billion in arrears, is intended to stabilize the sector’s financing framework and reduce payment bottlenecks.
Safeguarding Farmer Confidence
COCOBOD maintains that restoring timely payments is critical to sustaining farmer confidence and ensuring long-term productivity in Ghana’s cocoa industry.
The Board has reiterated its commitment to transparency, accountability, and financial discipline as it works with Licensed Buying Companies to maintain stability across the entire cocoa value chain.
Source: Omanghana
