The Ghana Cocoa Board (COCOBOD) has so far paid Licensed Buying Companies (LBCs) a total of GH¢1.091 billion, Head of Corporate Communications Jerome Kwaku Sam has announced.
He explained that an initial payment of GH¢237 million was made for 50,000 metric tonnes of cocoa. As of Thursday, February 19, 2026, an additional GH¢854 million has been disbursed to the LBCs.
“COCOBOD this morning, 19th Feb, 2026, has made payment of GH¢854m, bringing the total to GH¢1.091bn paid to LBCs,” Sam posted on Facebook.
The announcement comes at a time when Ghana’s cocoa sector is facing significant challenges. Sam clarified that delays in payments were not due to COCOBOD’s inefficiency but rather changes in financing arrangements and difficulties in accessing syndicated funding.
COCOBOD pays GH¢237 million to cocoa farmers.
He noted that COCOBOD has had to rely on international buyers to finance cocoa purchases, with conditions requiring LBCs to pre-finance farmer payments before reimbursement.
The government has recently introduced reforms, including a reduction in the producer price for the remainder of the 2025/2026 crop season.
The new price has been set at GH¢41,392 per tonne, equivalent to GH¢2,587 per bag. Authorities explained that the adjustment is intended to protect farmers amid declining global cocoa prices.
COCOBOD also revealed that it expects to save an estimated GH¢5 million monthly following salary reductions for its executive management and senior staff.
Executives are taking a 20 percent pay cut, while senior staff will have 10 percent deducted from their salaries. These reductions have already taken effect and will remain in place for the rest of the 2025/2026 crop year.
LBCs have been compelled to pre-finance cocoa purchases using high-interest loans from commercial banks, with the Ghana Reference Rate standing at about 29.8 percent in recent months.
This has placed a heavy financial burden on them, especially as COCOBOD’s first payment for cocoa delivered to ports in the 2023/2024 season did not arrive until January 26, 2024, six months late.
For the ongoing 2025/2026 season, which opened in August, COCOBOD has revised its funding formula to an 80/20 model.
Under this arrangement, LBCs receive 80 percent of funds upfront to cover farmer payments and handling costs, while the remaining 20 percent is settled upon delivery to COCOBOD.
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