The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Mr. Randy Abbey, has shed light on the ongoing challenges in the cocoa market, citing the current price of Ghanaian cocoa as a major factor affecting buyer interest and payments to farmers.
According to Mr. Abbey, the fundamental issue stems from the pricing of cocoa under the existing model. “Our cocoa at the current price is too expensive for buyers. Under this model, it is the buyers who finance the crop, and they are finding it increasingly difficult to justify purchasing cocoa at US$6,400 per metric ton when the global market price is around US$4,000,” he explained.
He emphasized that this pricing disparity has caused a shift in buyer behavior. Buyers are now moving to other markets where cocoa prices are more competitive, leaving some Ghanaian cocoa unsold or unpaid for. “We have paid farmers US$5,040 per ton, which represents their share. However, with global market prices significantly lower, buyers are reluctant to engage at these levels. This is a business decision driven by market realities,” Mr. Abbey noted.
The CEO further clarified that this situation has led to operational challenges for Licensed Buying Companies (LBCs). Some LBCs that have already collected cocoa do not possess the necessary off-tickets because buyers are unwilling to finance cocoa at the current prices. Consequently, this has delayed payments to certain farmers, and some batches of cocoa remain unsold.
Despite these challenges, COCOBOD said it has successfully sold over 530,000 metric tons of cocoa this season, leaving under 50,000 metric tons still seeking buyers. Mr. Abbey suggested that the unsold batches may account for many of the farmers’ complaints regarding unpaid or unpurchased cocoa.
In response to these market dynamics, COCOBOD has been exploring a new funding model for the 2026–2027 season. However, Mr. Abbey noted that sudden drops in cocoa prices have complicated these efforts. “We are able to service most, if not all, of the rollovers. But the price collapse has forced us to reassess our approach and prepare for a more sustainable funding model going forward,” he said.
“This situation mirrors global commodity trends, where changes in supply, demand, and prices can directly affect local producers. In Ghana, where cocoa is a key export, striking a balance between staying competitive and ensuring farmers are fairly compensated is a constant challenge.
Mr. Abbey concluded by reinforcing COCOBOD’s commitment to supporting farmers and stabilizing the cocoa sector amid these challenges. He stressed that ongoing dialogue with buyers, LBCs, and farmers is essential to ensure that Ghanaian cocoa continues to thrive in both local and international markets.
