Ghana Cocoa Farmers Face Harvest Risks Amid Payment Delays
Cocoa farmers in Ghana are raising concerns that prolonged payment delays are threatening their ability to harvest a strong mid-crop, despite favorable growing conditions. Some farmers report waiting up to six months for payments, creating serious cash flow constraints.
These delays have significantly reduced farmers’ working capital, making it difficult to hire labor or cover operational harvesting costs. The cocoa sector is a critical part of Ghana’s economy, supporting approximately 800,000 farming households.
According to Theophilus Tamakloe, Vice President of the Ghana Cocoa Cooperatives Association, many farmers are unable to proceed with harvesting due to lack of funds. He noted that this issue affects over 340,000 cooperative members. Tamakloe himself reported holding nearly a metric ton of cocoa in storage, unwilling to sell without immediate payment.
Farmers are increasingly demanding cash-on-delivery arrangements. “I will only sell to buyers who pay instantly,” Tamakloe stated, referring to Licensed Buying Companies (LBCs), of which around 65 currently operate in Ghana.
Another farmer, Abdulai Adoswin, indicated that although his production has increased this season—reaching 300 bags compared to 190 at the same point last year—future output remains uncertain if payment issues persist. The cocoa season is expected to conclude between August and September, making timely payments critical.
Meanwhile, Ghana’s cocoa regulator, COCOBOD, maintains that it has been releasing funds to LBCs to settle outstanding payments dating back several months. However, some buyers dispute this claim, stating they are still awaiting reimbursement for cocoa already purchased and sold.
Industry sources suggest that all cocoa for the 2025/26 season may already be sold, yet payment bottlenecks remain unresolved. COCOBOD has acknowledged the concerns and stated it is reviewing the situation.
The payment delays come amid broader financial challenges within Ghana’s cocoa sector. A prolonged liquidity crunch has strained the system, prompting adjustments to the fixed prices paid to farmers.
Additionally, cocoa production has faced downward pressure in recent years due to factors such as crop disease, aging plantations, illegal mining activities, and unpredictable weather patterns.
Recent data from the Bank of Ghana shows that cocoa export revenues declined by approximately 20% year-on-year, reaching 956.3 million cedis (about $86 million) in February.
Although the current mid-crop has shown improved yields, global cocoa prices have dropped sharply, falling nearly 75% from their peak levels in late 2024, limiting the financial benefit to farmers.
