COCOBOD Moves to Clear Cocoa Farmers’ Arrears
By Nii Trebi Hammond
The Ghana Cocoa Board (COCOBOD) says it is working closely with the Ministry of Finance to settle outstanding arrears owed to cocoa farmers, amid growing concerns over delayed payments across cocoa-growing communities.
The Chief Executive Officer of COCOBOD, Mr Randy Abbey, said management was fully aware of farmers’ frustrations and was committed to resolving the situation as a matter of urgency.
He made the remarks at a press briefing held on Friday in Accra, where he also announced that the Board was exploring a new funding model for cocoa purchases, with a strategic shift towards value addition rather than the continued export of raw cocoa beans.
“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 said.
“Any financing structure that limits the Board’s ability to prioritise value addition will not be considered.”
According to him, COCOBOD was scheduled to engage the leadership of cocoa farmers immediately after the press briefing to discuss the challenges confronting the sector and agree on practical solutions in the shortest possible time.
Mr Abbey explained that the Board’s current liquidity challenges stemmed largely from delays in accessing syndicated funding, a situation that had compelled COCOBOD to depend on international buyers to finance cocoa purchases.
“We pay our farmers a price of over US$5,000 per tonne, while cocoa is trading at just over US$4,000 per tonne on the international market,” he said.
He noted that the price disparity had led some Licensed Buying Companies (LBCs) to divert their operations from Ghana to other cocoa-producing countries where purchasing costs were comparatively lower.
Addressing public concerns over COCOBOD’s recent procurement of vehicles, Mr Abbey dismissed suggestions that management had prioritised operational logistics over payments to farmers.
He said that since assuming office in 2025, management had procured 20 pickup vehicles through Internally Generated Funds to enhance operational efficiency in cocoa-growing areas.
“When I assumed office, there was no official vehicle for me. I had to use my personal vehicle to enable us prioritise the procurement of vehicles for operational duties,” he said.
“How do we expect staff to deliver if there are no vehicles for them to perform their functions?” he asked.
On the issue of cocoa roads, Mr Abbey disclosed that COCOBOD had completed a rationalisation exercise under the Domestic Debt Exchange Programme, which reduced the Board’s debt from GH¢26 billion to GH¢4.5 billion.
He reaffirmed management’s commitment to ensuring prompt payments to cocoa farmers, stressing that the sustainability and efficiency of the cocoa sector depended heavily on the welfare of farmers.
Meanwhile, cocoa farmers in several parts of the country have threatened to embark on demonstrations if outstanding payments are not cleared.
