The Ghana Cocoa Board (COCOBOD) has introduced stricter enforcement measures against Licensed Buying Companies (LBCs), warning that companies caught purchasing cocoa beans on credit from farmers could lose their operating licences.
The directive forms part of a broader effort by COCOBOD to improve payment discipline, strengthen liquidity in the cocoa sector and enhance the efficiency of cocoa marketing operations.
Speaking at the launch of the Chamber of Cocoa Marketers, the Chief Executive Officer of COCOBOD, Dr Randy Abbey, said the regulator had formally notified LBCs that buying cocoa on credit was a violation of the terms of their licences.
He said although no company had yet lost its licence over the practice, COCOBOD would take decisive action against repeat offenders.
“We have written to the effect that if it happens again, your license will be revoked because it is against the terms of your license,” Dr Abbey said.
He added that COCOBOD had also advised farmers not to release cocoa beans to purchasing clerks without receiving immediate payment.
According to him, eliminating credit purchases would help reduce the financial pressure on LBCs, shorten turnaround times for cocoa purchases and reduce their dependence on bank borrowing.
The crackdown comes as COCOBOD prepares to introduce a new financing model for cocoa purchases beginning with the 2026/27 crop year.
Dr Abbey said the new system would ensure adequate liquidity throughout the season and eliminate delays in payments to LBCs after they take over cocoa from farmers.
He noted that delayed payments had been one of the major challenges affecting cocoa purchasing operations since 2020.
The reforms are also expected to support domestic cocoa processing by reducing the need to collateralise large volumes of cocoa for financing purposes.
Dr Abbey said improved access to liquidity would allow more cocoa beans to be made available to local processors, supporting Ghana’s efforts to increase value addition within the country.
The changes form part of the proposed Ghana Cocoa Board Bill 2026, which includes provisions guaranteeing cocoa farmers 70 per cent of the gross free-on-board (FOB) value of cocoa exports while allowing producer prices to be adjusted during the season in response to market conditions.
According to COCOBOD, the reforms are intended to improve the financial sustainability of the cocoa industry, strengthen the cocoa value chain and deliver better returns for farmers and other stakeholders.
