The Ghana Cocoa Board (COCOBOD) has warned Licensed Buying Companies (LBCs) against buying cocoa beans from farmers on credit, saying repeat offenders could lose their operating licences.

COCOBOD Chief Executive Officer, Dr Randy Abbey, said the directive is meant to improve liquidity in cocoa purchases and make sure farmers get paid promptly.

"The arrangement is to aid the shorter turnaround time for LBCs so that it can quicken the pace of purchases, eliminate indebtedness to banks and improve the efficiency and profitability of cocoa purchases," he said.

Dr Abbey said COCOBOD is not withdrawing any licences over past breaches, but warned there would be consequences for future violations.

"We are not withdrawing anybody's license. But we have written to the effect that if it happens again, your license will be revoked because it is against the terms of your license," he said.

He also urged farmers not to hand over cocoa on credit.

"We have also told the farmers that LBCs are not supposed to buy cocoa on credit from you. So don't go and take your cocoa to any purchasing clerk on credit," he added.

New financing model coming for next crop year

The directive comes ahead of a new financing model for the 2026/27 crop year, which Dr Abbey said would provide enough liquidity for cocoa purchases all year and reduce payment delays to LBCs.

"The new funding model is to ensure sufficient liquidity for cocoa purchases and related operations all year round," he said.

He said the reforms are part of wider changes under the Ghana Cocoa Board Bill 2026, which includes a provision guaranteeing farmers 70% of the gross Free On Board value.

"These measures and the new bill constitute the most significant reforms to our industry since 1984," he said. "These reforms are resetting the cocoa sector for growth and industrialisation."