Accra: Unpaid and frustrated cocoa farmers in Ghana have started detaining Purchasing Clerks due to ongoing liquidity issues, according to reports from the Licensed Cocoa Buyers Association of Ghana (LICOBAG). The association has revealed that the Ghana Cocoa Board (COCOBOD) has not paid for cocoa delivered since December 2025, leaving Licensed Buying Companies (LBCs) without the necessary cash flow to compensate farmers for beans already collected.
According to Ghana News Agency, Mr. Vitus Dzah, the General Secretary of LICOBAG, disclosed at a press conference in Accra that the purchasing clerks, who are the frontline representatives of LBCs in cocoa-growing villages, are facing harassment and arrests from farmers awaiting payment for their harvests. Mr. Dzah expressed concern that the detention of clerks signals a breakdown of social cohesion within these communities.
The delay in payments is causing resentment among farmers, creating an unsafe environment for purchasing activities. Mr. Dzah attributed the situation to the failure of a new financing model introduced by COCOBOD. This model, which replaced an annual syndicated loan with a self-financing approach, has left the LBCs in a liquidity crisis. They are now forced to borrow at high interest rates to cover a portion of purchases, while COCOBOD is supposed to provide funds upon delivery to the port.
The General Secretary warned that if the issue is not resolved promptly, the cocoa industry faces the risk of farmers abandoning cocoa farming for alternative livelihoods or engaging in illegal mining activities. He reported that some farmers are already selling their cocoa lands to illegal miners for immediate financial relief.
LICOBAG has urged the government and COCOBOD to secure a $300 million facility to address the payment backlog and ensure the release of detained clerks. The association stressed the urgency of restoring trust among stakeholders to prevent long-term damage to the industry.