COCOBOD CEO Randy Abbey Warns Ghana Cocoa Losing International Buyers Amid High Prices

COCOBOD CEO Randy Abbey says international buyers are turning away from Ghana’s cocoa due to higher farmgate prices, raising concerns over export competitiveness and cash flow for farmers. He argued that critics shouldn’t complain about COCOBOD buying new vehicles to improve operations, noting: “You can’t tell us not buy new cars because cocoa farmers haven’t been paid. They need the money to improve their work, we need the cars to improve our work too. The vehicles are very important to our work.” His comments highlight the tension between operational efficiency and timely farmer payments — a central issue for Ghana’s cocoa industry. Ghana’s cocoa output has declined sharply in recent seasons, further complicating pricing and export dynamics.

Price Pressures and Export Demand Challenges

Ghana is the world’s second‑largest cocoa producer after Côte d’Ivoire, yet export volumes have fallen steeply amid production setbacks. In 2024, cocoa export volumes dropped by over 50 % compared to the previous year, even as total export earnings rose due to higher world prices. This split — falling volumes with rising earnings — reflects how global price pressures can distort trade incentives, potentially discouraging some international buyers seeking steadier supplies. Ghana Guardian reports on export trends.

Farmer Payments & Cash Constraints

Many cocoa farmers in Ghana have reported delayed payments stretching months after deliveries, squeezing household finances and risking the next planting cycle. Licensed Buying Companies (LBCs) remain constrained by new financing structures that require upfront funds from international traders, which hasn’t always materialised. This mismatch has left beans stockpiled and financing tight, undermining farmers’ ability to reinvest in their farms. Cocoa Intel reports on farmer payment delays.

Why Cars & Logistics Matter

Abbey’s emphasis on acquiring vehicles isn’t trivial — field logistics, quality monitoring, disease control, and farmer outreach all depend on reliable transport. Without proper logistics and support, cocoa yields and quality suffer, making Ghana less competitive in a global market where buyers can choose alternatives. This is especially important given production risks like weather disruptions and crop disease. Reuters reports on Ghana cocoa production risks.

Outlook and Strategic Options

To stabilise demand and maximise earnings, analysts urge a mix of better farmer payment systems, stronger export financing options, and collaboration through initiatives such as the Côte d’Ivoire–Ghana Cocoa Initiative, which aims to influence global cocoa pricing and bolster farmer returns. Enhanced local processing, premium strategies tied to sustainability, and sharper marketing could also sustain Ghana’s foothold in global cocoa markets. Continued long‑form coverage from GhanaMedia.net will track how these trends evolve.

Watch the full clip here: TV3 Ghana source.