Accra, Ghana — Financial troubles at Ghana’s state-backed Producer Buying Company (PBC) have delayed payments to thousands of cocoa farmers, disrupting the supply chain and raising concerns about the upcoming production season.
Farmers report that the delays are making it extremely difficult to prepare for the next cycle. Many depend on cocoa sales not only for household expenses but also to pay laborers, repay loans, and maintain their farms.
Ibrahim Boateng, a cocoa farmer, has been preparing his beans for export but faces uncertainty as communities await payments for already delivered beans. “It is now extremely difficult to produce cocoa. So when we do not receive timely payments, it really affects us,” he said.
The PBC, mandated to buy cocoa from farmers as the buyer of last resort, is reportedly struggling with mounting debts and a severe cash shortage. It faces a $60 million debt, equivalent to around 673 million Ghana cedis. This situation has left most cocoa farmers in about 127 districts unpaid for over 9,000 bags of cocoa they have stockpiled.
The crisis arrives at a challenging time for Ghana’s cocoa industry. It follows record price rallies two years ago, but global cocoa prices have since tumbled amid improved harvests in some producing countries and low demand from chocolate manufacturers.
Analysts warn that the liquidity crunch could damage Ghana’s export earnings if cocoa purchases continue to slow, with potential wider implications for the national economy.
The country’s cocoa regulator, Coco board, says it is looking to raise $1 billion in domestic bonds to fund purchases from farmers ahead of the next crop season.
A call has also been made for urgent reforms, including converting the cocoa sector into a lean regulatory authority and implementing aggressive measures to combat illegal mining, locally known as galamsey, which has destroyed and continues to destroy cocoa farmlands across the country.
As farmers like Ibrahim Boateng prepare for the next season, many emphasize the need for confidence in the system. Without reliable buyers and timely payments, sustaining production could become increasingly difficult for numerous farmers.