The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Randy Abbey, has disclosed that the Board is collaborating with the Ministry of Finance to clear outstanding arrears owed to cocoa farmers.
He acknowledged that management is fully aware of farmers’ frustrations over delayed payments and assured them that efforts are underway to address the situation as quickly as possible.
Mr Abbey made these remarks at a press briefing in Accra on Friday, where he also revealed that COCOBOD is considering a new financing framework for cocoa procurement. The proposed model places strong emphasis on value addition rather than continued dependence on the 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,” he said.
“Any financing structure that limits the Board’s ability to prioritise value addition will not be considered.”
He further indicated that COCOBOD would engage the leadership of cocoa farmers after the briefing to deliberate on the challenges and agree on a timely solution.
Mr Abbey explained that the Board is currently experiencing liquidity constraints due to delays in accessing syndicated funding, forcing it 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 this development has led some Licensed Buying Companies (LBCs) to divert from purchasing Ghanaian cocoa beans to sourcing from other cocoa-producing countries where prices are comparatively lower.
Mr Abbey also disclosed that since management took office in 2025, COCOBOD has acquired 20 pickup vehicles through its Internally Generated Funds to enhance operations in cocoa-growing communities.
He rejected claims that the Board had prioritised the acquisition of operational vehicles over payments to farmers.
“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 stated that management had completed a rationalisation exercise under the Domestic Debt Exchange Programme, which reduced COCOBOD’s debt from GH¢26 billion to GH¢4.5 billion.
He reaffirmed the Board’s commitment to ensuring timely payments to farmers to support the smooth functioning of the cocoa sector.
Meanwhile, cocoa farmers across the country have threatened to stage demonstrations if outstanding payments are not settled.
The Minority Caucus in Parliament has also urged the government to immediately clear outstanding payments exceeding GH¢10 billion owed to cocoa farmers and Licensed Buying Companies.
Source: GNA
