Cocoa Crisis: Mahama calls emergency cabinet meeting to rescue farmers and stabilise sector

President John Dramani Mahama has called an emergency Cabinet meeting to address the escalating challenges confronting the cocoa sector, following growing concerns over financing constraints, payment delays, and operational difficulties across the cocoa value chain.

The high-level session, scheduled for Wednesday, February 11, will focus on finding urgent and sustainable solutions to stabilise the sector, which remains one of Ghana’s most important export earners and a major source of livelihood for hundreds of thousands of farming households.

According to the Minister for Government Communications, Felix Kwakye Ofosu, the President’s decision was informed by recent developments within the cocoa industry, particularly the liquidity challenges affecting cocoa purchases and the resulting delays in payments to farmers and Licensed Buying Companies (LBCs). He explained that the meeting would take a comprehensive look at all issues affecting the sector and propose practical interventions to prevent further deterioration.

“The emergency Cabinet session will examine options for securing emergency funding to support cocoa purchases, improve liquidity for Licensed Buying Companies, and ensure timely payment to farmers,” Mr. Kwakye Ofosu said.

In recent months, the cocoa sector has been hit by severe financing shortfalls, resulting in payment delays to farmers and LBCs. Several cocoa-growing communities have reported unpaid deliveries spanning weeks, raising concerns about farmers’ ability to maintain their farms, purchase inputs, and prepare for subsequent crop seasons.

Stakeholders warn that continued delays risk discouraging farmers from cocoa production, with some resorting to alternative activities, including illegal mining, to survive. The destruction of cocoa farms through galamsey has already impacted production levels, compounding the challenges facing the sector.

The industry also faces other pressures, including smuggling of cocoa beans across borders, rising production costs, ageing farms, and declining yields in some regions. Analysts caution that without urgent and coordinated government action, these pressures could undermine Ghana’s position as one of the world’s leading cocoa producers.

The emergency Cabinet meeting is expected to explore broader reforms, including protecting cocoa farmlands, strengthening regulation, and restoring confidence in the sector. Cocoa remains a critical pillar of Ghana’s economy, contributing significantly to foreign exchange earnings and rural employment.

Read also…