Funding Woes Hit Ghana’s Cocoa Buyers as Price Confusion Persists

Recent financial challenges have emerged for licensed cocoa buyers in Ghana as they struggle to afford purchasing beans from farmers. Despite a recent government decision to decrease the fixed price by nearly 30%, the domestic rate of 41,392 cedis ($3,797) still exceeds the global market price of about $3,200.

This price discrepancy has resulted in a stockpile of unsold beans at ports, pushing the market regulator, Cocobod, to reduce prices. Sources, including one from the state-owned Produce Buying Company, indicate that buyers lack the necessary funds to make purchases, with recent disbursements addressing debts rather than new transactions.

Farmers, many still awaiting payment for delivered cocoa, are frustrated. Cocobod maintains that the farmer price will not be reduced again this season, despite liabilities mounting as international traders hesitate to engage at the current rates.