The Licensed Cocoa Buyers Association of Ghana (LICOBAG) has blamed the worsening challenges in the cocoa sector on what it describes as a flawed sales strategy by the Ghana Cocoa Board (COCOBOD) and its trading arm, the Cocoa Marketing Company (CMC), as well as persistent policy inconsistencies in the industry.
Addressing the media at a press conference in Accra on Thursday, February 5, LICOBAG’s Executive Secretary, Victus Dzah, said the current off-taker shipment and sales arrangements have exposed the industry to market volatility and contributed significantly to the present crisis.
He criticised the shift from contract roll-overs in the previous season, due to COCOBOD’s inability to deliver, to a situation where cocoa cannot be bought because local prices are no longer competitive. According to him, traders failed to take advantage of favourable global prices despite clear market signals that prices were likely to fall.
LICOBAG revealed that cocoa delivered to ports since December 2025 has not been paid for, while stocks bought from farmers and stored in upcountry warehouses also remain unpaid. The Association further warned that some of the cocoa is being kept in fertiliser bags, posing serious quality risks.
The Association said the situation is creating uncertainty for Licensed Buying Companies and threatening continued cocoa purchases, particularly for beans expected to be sold between March and August.
At the community level, LICOBAG noted growing tensions between farmers and purchasing clerks, including reported arrests over delayed payments.
Beyond the immediate trading challenges, the Association accused successive governments of failing to pursue genuine and sustained reforms in the cocoa sector, arguing that policy inconsistencies and weak implementation have left the industry structurally fragile.
LICOBAG called for a non-partisan, market-driven sales strategy and comprehensive reforms to realign and safeguard Ghana’s cocoa industry, warning that without urgent action, the sector faces a serious and potentially irreversible decline.