The Chief Executive Officer of the Ghana Cocoa Board, Randy Abbey has revealed how syndicated loan delays and poor financial planning plunged Ghana’s cocoa sector into a historic crisis, resulting in an estimated loss of $840 million.
Speaking on Hot Issues with Keminni Amanor, as monitored by MyNewsGH, Abbey explained that COCOBOD’s financial missteps during the 2023/2024 season not only weakened the industry’s performance but also severely undercut the earnings of cocoa farmers across the country.
According to Abbey, COCOBOD entered the 2023/2024 cocoa season by seeking a syndicated loan using a conservative pricing benchmark of $2,600 per ton, despite ongoing market volatility and liquidity challeneges.
However, the real crisis emerged when the funds arrived in December 2023—three months after the official opening of the cocoa season.
“Licensed Buying Companies couldn’t get seed funds to buy cocoa for almost four months. This has never happened in COCOBOD’s history,’’ Abbey stated with alarm.
The delay in financing had a cascading effect. COCOBOD, having already committed to deliver over 333,000 tons of cocoa, was unable to fulfill those contracts, leading to a rollover into the 2024/2025 season.
As global cocoa prices soared to $6,600 per ton, Ghana found itself servicing prior contracts at a $4,000 loss per ton.
“For every ton we used to service the rollover, we lost $4,000. As of April 2025, we had serviced 210,000 tons. That’s a loss of $840 million,” Abbey disclosed.
This massive shortfall, he explained, is a key reason the government could not significantly increase the cocoa producer price, despite mounting political and economic pressure.
“They increased it to GH€3,100 just three weeks before the election, but that’s less than 50% of the world price,” he added.
The situation remains precarious. Abbey warned that Ghana is still rolling over another 120,000 tons into the 2025/2026 season, and while the president has expressed a desire to improve farmer incomes, broader economic instability—particularly the recent challenges facing the cedi—complicates any effort to adjust prices upward.
“This is not just about mismanagement,” Abbey said. “It’s about the collapse of confidence in the institutions that are supposed to protect our farmers and our Economy.”
