The Board Chairman of Ghana Cocobod ,Dr.Samuel Ofosu Ampofo says Licensed Buying Companies (LBCs) that fails to pay cocoa farmers after receiving monies from government will be sanctioned and possibly black listed.
It follows widespread concerns of cocoa farmers in Eastern region that their cocoa beans have not been paid for as LBCs still claim they have no monies despite government announcing release and disbursement of Gh4.9 billion cedis to the LBCs.
Dr.Samuel Ofosu Ampofo said the LBCs will be summond into a meeting to find out why releases made have not achieved the intended purposes.
He said this during a fact finding visit to some cocoa farmers on Thursday in parts of the Eastern region to ascertain situation on the ground.
“We are going back to the drawing board look at how much has been given to the LBCs and then to also have a meeting with the banks, the managing banks of the LBCs, the LBCs themselves and then COCOBOD to sit down and fashion out a system where the monies that have been released will be referenced and be directed to the farmers so that the farmers will receive the money.”
Dr. Samuel Ofosu Ampofo noted that “We have been told that some of the LBCs are owing the banks and so the banks are swallowing the monies that have been given to them. That is most unfortunate that is not the target that we intend to do. The LBCs that are owing the farmers, Cocobod want to assure the banks that whatever it is, they will be paid but for now, monies that are meant for the farmers, for the purchases that have been done and for purchasing of the leftover cocoa that have not been taken over, let us use that money for that purpose and give the farmers some respite.”
Dr. Samuel Ofosu Ampofo assured that there will be no further reduction in farmgate price of cocoa beans despite declining price of the commodity on the world market.
As of second week of March 2026, international cocoa prices are trading bellow US$3,000 per metric ton for New York futures, showing a significant decline from the record highs of 2024.
Prices have fallen approximately 40% year-to-date and about 75% from their 2024 peaks.
The market is experiencing high volatility, driven by expectations of a surplus in the 2025/26 season.
Côte d’Ivoire recently reduced its producer price, resulting in a lower rate (approx. $1.45–$1.81/kg) compared to Ghana’s which has fixed price (approx. $2.10/kg), creating regional marketing imbalances.
There is fears among cocoa farmers that, government will further reduce prices of cocoa.
However, addressing cocoa farmers in Atiwa West in Eastern region Dr. Samuel Ofosu Ampofo assured that government will continue to absorb the current price difference stating that there will be no further reduction.
He explained that,currently government is paying about 130% Free on Board (FOB ) price to cocoa farmers despite continous decline in price of the commodity on the world market.
The Board Chairman of Cocobod also announced that,government will soon establish a price stablization fund for the cocoa sector to serve as buffer during crises.
He was accompanied by Boad members of Cocobod,Eastern Regional Minister Rita Akosua Adjei Awatey, and some technocrates at Cocobod.
The visit to cocoa farmers in the region aims at assessing the situation on the grounds regarding widespread report of nonpayment of cocoa beans sold by farmers.
Dr. Samuel Ofosu Ampofo assured the farmers that the situation is being addressed with release of more funds to the license buying companies to pay cocoa farmers.
Source: Starrfm.com.gh
