Full Breakdown
Ghana's Cocoa Farmers Face Financial Crisis Amid Unpaid Deliveries
2/13/2026, 12:19:53 PM
Current Challenges in the Cocoa Sector
Ghana, the world's second-largest cocoa producer, is experiencing a severe crisis as thousands of cocoa farmers, including Joseph Bermah Dautey, struggle with delayed payments from the Ghana Cocoa Board (COCOBOD). Dautey, who has not received payment for six bags of cocoa delivered months ago, reports that he can only afford one meal a day. This situation is echoed by many farmers who are unable to pay for basic necessities, including food and education for their children, due to a backlog of unsold cocoa beans and a significant drop in global cocoa prices.
Economic Impact and Declining Production
The cocoa sector is vital for Ghana, supporting over 800,000 farming households and serving as a key source of foreign exchange. However, COCOBOD has indicated that the country is likely to miss its production target for the 2024/2025 season, with forecasts dropping from 650,000 tonnes to as low as 600,000 tonnes. Factors contributing to this decline include aging plantations, the Cocoa Swollen Shoot Virus Disease, illegal mining activities, and adverse climate conditions. As a result, the farmgate price set by COCOBOD remains non-competitive, leading to reduced purchases from international traders.
Farmers' Responses and Proposed Solutions
In light of the ongoing crisis, farmers have expressed a willingness to accept lower prices for future cocoa deliveries if the government first addresses outstanding payments for beans already delivered. The Ghana Cooperative Cocoa Farmers and Marketing Association has emphasized the urgency of settling these debts before negotiating any changes to the farmgate price. The association's national vice president, Theophilus Tamakloe, stated, "What they have already bought and not paid for, they should find a way to pay that immediately."
Global Competition and Future Outlook
As Ghana grapples with these challenges, other cocoa-producing nations are positioning themselves to potentially surpass Ghana's production levels. Ecuador is projected to produce over 650,000 tonnes in the 2025/2026 season, while Indonesia aims to increase its output significantly. These countries benefit from better yields and higher prices for farmers, which could threaten Ghana's long-standing position in the global cocoa market.
Official Statements and Responses
COCOBOD Managing Director Randy Abbey has acknowledged the liquidity issues facing the board and the delayed payments to farmers. He noted that efforts are underway to resolve these issues, stating, "The situation is where we have beans, but they are not buying; the beans are too expensive." The regulator is also in discussions with farmers and the Finance Ministry to secure funding for outstanding payments.
Conflicting Reports & Gaps
While COCOBOD has reported approximately 50,000 tonnes of unsold cocoa at ports, farmers claim they have significant unsold stocks at home and lack access to buyers due to the closure of Licensed Buying Companies. This discrepancy highlights the ongoing challenges in the supply chain and the urgent need for a resolution.
Verbatim Quotes
- “For about three weeks now, I eat once a day, things are very difficult for me,” — Joseph Bermah Dautey, Cocoa Farmer
- “After that, they can meet with us to discuss a possible reduction of the farmgate price.” — Theophilus Tamakloe, National Vice President, Ghana Cooperative Cocoa Farmers and Marketing Association
- “The situation is where we have beans, but they are not buying; the beans are too expensive,” — Randy Abbey, Managing Director, COCOBOD
