Accra: Mr Randy Abbey, the Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), announced that the Board is actively working with the Ministry of Finance to address the arrears owed to cocoa farmers. Management is fully aware of the concerns regarding delayed payments and is committed to resolving these issues promptly.
According to Ghana News Agency, Mr Abbey made this announcement during a press briefing in Accra, where he revealed that COCOBOD is exploring a new funding model for cocoa purchases. This model emphasizes promoting value addition rather than relying on the export of raw cocoa beans. Mr Abbey stated, "We are looking at a model that does not tie our hands with respect to the collateralisation of the raw bean, because we want a funding structure that facilitates and supports value addition."
Mr Abbey assured that COCOBOD will not consider any financing structure that limits its ability to prioritize value addition. Following the press briefing, COCOBOD plans to meet with cocoa farmers' leadership to discuss the challenges and reach a quick resolution.
He explained that the delay in accessing syndicated funding has led to liquidity challenges, forcing COCOBOD to depend on international buyers for cocoa purchases. Despite this, COCOBOD pays farmers over US$5,000 per tonne, while the international market price is just over US$4,000 per tonne. This disparity has caused some Licensed Buying Companies (LBCs) to source cocoa from other countries with lower prices.
Since assuming office in 2025, Mr Abbey highlighted that COCOBOD has procured 20 pickup vehicles using Internally Generated Funds to enhance operations in cocoa-growing areas. He refuted claims that the Board prioritized vehicle purchases over farmer payments, emphasizing the necessity of vehicles for staff to perform their duties effectively.
Regarding cocoa roads, Mr Abbey noted that management's rationalization process under the Domestic Debt Exchange Programme reduced COCOBOD's debt from GHS26 billion to GHS4.5 billion. He reiterated COCOBOD's commitment to ensuring prompt payments to farmers, crucial for the efficient operation of the cocoa sector.
Cocoa farmers across the country have threatened demonstrations if outstanding payments are not settled. The Minority Caucus in Parliament has also urged the government to immediately address the more than GHS10 billion owed to cocoa farmers and Licensed Buying Companies.