Cocoa Farmers not paid Since January

Ghana’s state-owned cocoa buyer, Producer Buying Company (PBC), is struggling to purchase cocoa from farmers after accumulating debts of about 673 million cedis (approximately $60 million), raising the risk of asset seizure, according to a company source familiar with the situation.

PBC, which is mandated to act as a buyer of last resort for cocoa farmers, has reportedly been unable to meet its obligations due to severe liquidity constraints. The development comes just three months after the government pledged to restore the company as the country’s leading cocoa purchasing firm.

The source disclosed that PBC currently owes farmers 24 million cedis for more than 9,000 bags of cocoa already delivered, leaving many growers unpaid and unable to sustain their livelihoods.

Financial pressure on the company intensified in March when a consortium of Ghanaian banks, owed 257 million cedis, secured a court order to sell off PBC’s assets to recover their funds.

Ghana’s cocoa sector has been grappling with broader challenges, including difficulty selling beans, declining global prices, and reduced demand from chocolate manufacturers. These factors have compounded PBC’s operational struggles.

Once controlling about 30% of Ghana’s cocoa purchasing market, PBC’s share has sharply declined to below 5%, further weakening its financial position. The downturn has worsened conditions for smallholder farmers, many of whom have reportedly not been paid for cocoa supplied since November 2025.

Under Ghana’s cocoa marketing system, Licensed Buying Companies such as PBC procure cocoa from farmers and sell it to the regulator, Ghana Cocoa Board (COCOBOD), which then exports the commodity to international buyers.

However, the source indicated that COCOBOD has yet to reimburse PBC for approximately 800 metric tons of cocoa delivered more than two months ago, deepening the company’s cash flow crisis.

Despite assurances from COCOBOD that funds are being disbursed to buying companies, PBC reportedly has not received any payments.

The company’s financial difficulties extend beyond farmer payments. Its debt profile includes more than 24 months of unpaid staff salaries, vendor arrears, and outstanding statutory obligations.

In February, Finance Minister Cassiel Ato Forson described the revival of PBC as central to the government’s strategy for supporting cocoa farmers, promising a transparent and reliable channel for producers to sell their beans at fair prices. However, the source claims no further engagement has taken place between the minister and the company since then.

The situation is further complicated by the stance of Social Security and National Insurance Trust (SSNIT), a major shareholder in PBC, which has reportedly been reluctant to inject additional capital after failing to receive expected dividends from its initial investment.

Notably, two of the five banks involved in the asset seizure process are state-owned institutions that fall under the oversight of the finance ministry.

Despite its challenges, PBC maintains a significant operational footprint, with a presence in all 127 cocoa-growing districts across the country giving it wider reach than any private competitor.

The company source suggested that a structured intervention by COCOBOD, such as directing a portion of cocoa sales to PBC and releasing funds for purchases, could help stabilise operations.

Without urgent support, however, PBC’s financial crisis risks deepening the hardships faced by Ghana’s cocoa farmers and further destabilising a sector that remains critical to the national economy.