Licensed Buying Companies (LBCs) across the country have largely abandoned the purchase of cocoa beans due to severe funding challenges and the failure of the Ghana Cocoa Board (COCOBOD) to settle outstanding arrears owed them.
Speaking on ABC In the Morning, the President of the Cocoa Cooperative Union, Issifu Issaka, disclosed that only a few LBCs are currently active in the cocoa purchasing business, leaving many farmers with limited options for selling their produce.
“There are few LBCs who are buying from the farmers. They take the cocoa to their warehouses and keep it there. Most of the LBCs have abandoned the purchase totally,” he stated.
According to Issaka, the withdrawal of many LBCs from cocoa purchasing is largely driven by persistent funding constraints. He explained that several companies have already delivered cocoa beans to COCOBOD and taken loans to finance purchases from farmers, yet payments due them remain unsettled.
“They are saying they have taken their beans to COCOBOD, they’ve gone for loans, and they have purchased it from farmers, but they have not been paid by COCOBOD,” he noted.
Issaka emphasized that the situation has made it financially untenable for many LBCs to continue operations, as they are unable to cover essential operational costs such as transportation, storage, and staff expenses.
“In terms of incurring operational cost, they have to stay home. If they decide not to pay all these operational costs, they will be able to save something small rather than buying the cocoa, spending money, and getting no payment,” he explained.
The development, he warned, poses a serious threat to the cocoa value chain, particularly affecting cocoa farmers who depend on LBCs as the primary buyers of their produce. The situation also raises concerns about the broader impact on cocoa production and the sustainability of the industry if funding and payment challenges persist.
