Falling Global Prices Stall Cocoa Sales – COCOBOD
By: Solomon Nartey Tetteh
The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Dr. Randy Abbey, has attributed recent challenges in cocoa bean sales and delayed payments to farmers to a sharp decline in global cocoa prices, which has made Ghana’s cocoa less attractive to international buyers.
Speaking in a press conference, Dr. Abbey explained that COCOBOD had largely managed to service most, if not all, rollovers under its existing financing arrangements and had been preparing to transition to a new funding model for the 2026/2027 crop seasons.
However, an unexpected crash in global cocoa prices has disrupted these plans.
According to him, under the current financing model, cocoa buyers play a critical role by providing funding for the crop. Ghana’s cocoa is sold to these buyers at about US$6,400 per tonne, while farmers are paid US$5,040 per tonne as their share. The Dr. Abbey noted that the challenge is that global cocoa prices have since fallen to around US$4,000 per tonne.
“With the crop trading at about $4,000 on the international market, it becomes difficult to expect a buyer to purchase cocoa at $6,000 or more. These are business decisions, and buyers will naturally move to markets where prices are competitive,” he said.
Dr. Abbey revealed that the price mismatch has led many buyers to shift to other cocoa-producing countries offering cheaper beans.
This shift, he said, explains complaints from some farmers that their beans have either not been bought or that they have not yet been paid after delivery.
He also explained that Licensed Buying Companies (LBCs), which purchase cocoa beans from farmers, depend on international buyers to take up the beans they collect. With buyers pulling back due to the high prices of Ghana’s cocoa, some LBCs are left holding stock without off-takers, resulting in payment delays.
“To put the situation in perspective, as we speak, we have sold over 530,000 tonnes of cocoa. We have less than 50,000 tonnes for which we are still seeking buyers. It is within this category that many of the affected beans fall,” he stated.
He stressed that the difficulties do not stem from a lack of cocoa production, but rather from global market dynamics that have temporarily made Ghana’s cocoa uncompetitive.
Dr. Abbey assured stakeholders that COCOBOD is closely monitoring the situation and engaging with partners to address the challenges, while emphasizing that the current slowdown reflects broader market conditions rather than operational failures within the cocoa sector.
