The president of the Licensed Cocoa Buyers Association, Samuel Adimado, has disclosed that Licensed Buying Companies (LBCs) have not received payments from the Ghana Cocoa Board for two consecutive seasons, with arrears estimated at $185 million.<\/p>\n
Speaking on Joy News\u2019 PM Express on Tuesday, he said the unpaid bills are at the centre of a wider funding crisis affecting the cocoa purchasing chain, leaving farmers, purchasing clerks, and banks exposed.<\/p>\n
\u201cSome of our members, two years ago, have not been paid. And on this channel, I indicated that to the tune of $185 million they\u2019ve not been paid,\u201d he said.<\/p>\n
Mr Adimado explained that LBCs are licensed and regulated by Cocobod to buy cocoa directly from farmers and deliver it to takeover centres.<\/p>\n
He said the association\u2019s recent press conference was prompted by growing public perception that LBCs were withholding farmers\u2019 money after collecting cocoa.<\/p>\n
\u201cOur press conference\u2026 was basically to clear the airwaves in terms of our relationship with our farmers, because the perception was that farmers perceive that we have collected cocoa, delivered to the cocoa board, and we are refusing to pay them,\u201d he said.<\/p>\n
Mr Adimado stressed that under the current sales model, funding for cocoa purchases is no longer structured as in the old syndicated model, where Cocobod secures funds and disburses them to LBCs.<\/p>\n
\u201cThis model is not the syndicated model where the cocoa board secures money and then gives it to us,\u201d he explained.<\/p>\n
\u201cSo basically, the model is in the hands of traders. So it\u2019s traders who basically provide the money, and then it enables us to go to the field,\u201d he added.<\/p>\n
He said that, despite the current crisis, LBCs have, for years, pre-financed cocoa purchases by borrowing from banks, paying farmers, delivering cocoa, and waiting to be reimbursed.<\/p>\n
\u201cFor the past seven years, the LBCs have been pre-financing the cocoa business\u2026 where we go to the banks, borrow money, go and buy cocoa from farmers, and then we deliver to the Cocoa Board, and then we wait until we are paid,\u201d he said.<\/p>\n
He recalled that during the 2023\/2024 season, LBCs experienced significant delays in reimbursement.<\/p>\n
\u201cIn 2023\/24\u2026 it took nine months before we were paid, yet nobody heard of us,\u201d he stated.<\/p>\n
He said the current crisis also involves purchasing clerks who serve as the frontline link between LBCs and cocoa farmers in communities.<\/p>\n
\u201cWe have purchasing classes, about 50,000 purchasing classes in the various communities where farmers live,\u201d he said.<\/p>\n
Mr Adimado explained that, in many cases, farmers hand over cocoa to purchasing clerks even when cash is not immediately available, due to trust and long-standing relationships.<\/p>\n
\u201cIn a situation where the purchasing clerk doesn\u2019t even have money, the farmer will give his cocoa\u2026 with the hope that when the LBC gives you money, I will be paid,\u201d he said.<\/p>\n
He argued that funding delays have hindered some LBCs’ ability to disburse funds downstream, creating the impression that farmers were being deliberately cheated.<\/p>\n
\u201cThat is what came into the airwaves, as if LBCs had borrowed cocoa from farmers and had not been paying,\u201d he said.<\/p>\n
He insisted the association is not at war with Cocobod, but is pushing for a solution to keep the cocoa supply system stable.<\/p>\n
\u201cSo I need to indicate that we are not fighting Cocobod, but either we\u2019re fighting government,\u201d he said.<\/p>\n
Mr Adimado also disclosed that LBCs are under pressure from banks, noting that their debts to lenders are even larger than their debts to farmers.<\/p>\n
\u201cWe owe the banks more than we even owe the farmers,\u201d he said.<\/p>\n
He linked the problem to complications affecting trader participation, including \u201cterminal price issues\u201d and \u201cthe contractual aspect,\u201d which he said Cocobod\u2019s representatives would be better placed to explain.<\/p>\n
He said the association is continuing engagement with Cocobod and remains hopeful that the Finance Ministry will support efforts to resolve the arrears.<\/p>\n
\u201cThere are good indications that wherever Cocobod will find money, they will find money, not only Cocobod, but also the Minister of Finance, would find\u2026 need to address this issue,\u201d he stated.<\/p>\n
<\/p>\n
The president of the Licensed Cocoa Buyers Association, Samuel Adimado, has disclosed that Licensed Buying Companies (LBCs) have not received payments from the Ghana Cocoa Board for two consecutive seasons, with arrears estimated at $185 million. Speaking on Joy News\u2019 PM Express on Tuesday, he said the unpaid bills are at the centre of a […]<\/p>\n","protected":false},"author":123457,"featured_media":15570,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[41],"tags":[1508,4917],"class_list":["post-15569","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-news","tag-cocobod","tag-licensed-buying-companies"],"_links":{"self":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/15569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/users\/123457"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15569"}],"version-history":[{"count":1,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/15569\/revisions"}],"predecessor-version":[{"id":15571,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/15569\/revisions\/15571"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/media\/15570"}],"wp:attachment":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}