The government has disbursed an additional GH¢4.2 billion to the Ghana Cocoa Board (COCOBOD) to be given to Licensed Buying Companies (LBCs) for onward payment to cocoa farmers who have been owed since November last year.

This comes at a time when some cocoa farmers continue to wallow in discontent over the producer price cuts in mid-February.

Speaking in an interview with Citi Business News, the Head of Public Affairs at COCOBOD, Jerome Sam, highlighted his outfit’s commitment to clearing all outstanding debt before the end of the 2025/2026 cocoa season, expected around August.

“We hope to complete all payments before the close of the season, which is expected to end around August or September,” he stated.

He continued that the GH¢4.2 billion was released by COCOBOD around last week to the Licensed Buying Companies to facilitate payments to farmers.

He explained that while some farmers are still owed, others have already received payment due to existing financing arrangements between COCOBOD and the Licensed Buying Companies.

Jerome Sam added that COCOBOD remains focused on improving liquidity within the cocoa purchasing system to ensure prompt payments to farmers and sustain production across the country’s cocoa-growing areas.

“Some of the payments are recent, while others are older. Since 2023, when we experienced challenges with the syndicated loan, Licensed Buying Companies sometimes stepped in to pre-finance cocoa purchases. COCOBOD later reimburses them for those purchases.

“That is why some farmers are not owed by the LBCs, while others still have outstanding payments. As COCOBOD, we are working tirelessly to ensure that every cedi owed to the Licensed Buying Companies is paid so they can also settle any outstanding debts with their cocoa farmers,” he explained.

Cocoa farmers picket over price cuts

Aggrieved cocoa farmers picketed at the headquarters of the Ghana Cocoa Board (COCOBOD) in Accra, on Friday, February 20, over a slash in producer prices and delayed payments, which they say have placed them in economic and financial distress.

With placards bearing inscriptions of government betrayal and chanting slogans, they called on authorities and all stakeholders to protect their livelihoods.

Some of the inscriptions read: “We worked, you lied,” “Government celebrates, but our families mourn,” and “We can’t pay our kids’ school fees,” among others.

The distressed farmers expressed deep concerns through their chants and placards, stating that despite their significant contribution to the economy, their income has been eroded. They warned that unless urgent measures are taken, they may lose their livelihoods, a situation likely to push many farmers away from cocoa farming and potentially affect future production levels which is likely to affect the economy.

They are demanding an upward review of the prices and expedited processing to ensure the settlement of outstanding payments owed to them by Licensed Buying Companies operating under COCOBOD’s supervision.

"The prices were not reduced under the previous regimes; why is this administration reducing them. We have no problem with the government; they should just leave the prices to remain the same," a frustrated woman told journalists.

According to the farmers, delays in payment and the recent downward adjustment in cocoa prices have made it increasingly difficult to cover basic household needs, including school fees, healthcare, and farm maintenance.

“We depend entirely on cocoa. When payments are delayed, or prices drop, our families suffer,” one protester said, adding that many farmers are struggling to prepare for the next crop season due to a lack of funds.

President Mahama speaks on price cuts

President John Dramani Mahama defended the upward revision of cocoa prices, describing it as a critical measure to shield the country from sliding into fresh debt running into billions of dollars.

Delivering the 2026 State of the Nation Address (SONA) in Parliament on Friday, the President said the decision formed part of difficult but necessary steps aimed at stabilising the economy and preventing a return to recent fiscal turmoil.

"We revised the prices of cocoa to achieve competitive pricing. Failure to do this would have meant borrowing billions in borrowed funds. This unplanned expenditure would have taken us right back to the very devasting economic problem we have only recently began to escape,"

He further assured cocoa farmers that these adjustments are not merely fiscal corrections but the foundation of a structural overhaul, the benefits of which will be realised in the long term.

“I can firmly assure farmers that the reforms announced by the government will see the total transformation of the sector and ensure they achieve more from the cocoa… These are difficult decisions, but, Mr Speaker, I had to take them,” he said.