Ghana's cocoa industry is experiencing a mounting financial crisis, as indicated by the Licensed Cocoa Buyers Association stating that cocoa buyers owe banks between 7-8 billion cedis (approximately $650-750 million). This situation is exacerbated by delayed payments from the regulatory body Cocobod and a significant downturn in global cocoa prices, which have plummeted from $12,000 per tonne in 2024 to about $4,000 currently. Additionally, these licensed buyers have outstanding payments to farmers amounting to $205-234 million, creating an unsustainable financial environment where interest on debts is accumulating rapidly.

The roots of this crisis can be traced back to a combination of two consecutive poor harvests caused by diseases and adverse weather conditions, alongside the drastic decline in international cocoa prices. The Cocoa Board's diversion of funds towards non-essential projects such as road construction has further contributed to this dilemma by depriving cocoa buyers of the necessary funds to pay farmers on time. As a result, around 580,000 tonnes of cocoa beans have been delivered this season, but buyers are waiting for complete payment, while an additional 70,000 tonnes are still left unharvested in the fields, raising concerns over future productivity and financial stability in the sector.

In response to this crisis, the Ghanaian government, through Finance Minister Cassiel Ato Forson, has announced a nearly 30 percent reduction in the farmgate price, setting it at $3,580 per tonne. This drastic measure is aimed at alleviating the financial burden on the buyers and stabilizing the cocoa market; however, it may lead to further discontent among farmers who depend on cocoa sales for their livelihood. The broader implications of these financial struggles could threaten Ghana's position as a leading cocoa supplier globally, affecting not just local economies but also international cocoa markets.