The Licensed Cocoa Buyers Association of Ghana (LICOBAG) has proposed a series of funding, pricing, and policy reforms aimed at restoring stability and professionalism to the country’s cocoa industry, warning that without urgent intervention, the sector risks prolonged decline.

Speaking at a press conference in Accra on Thursday, February 5, Executive Secretary Victus Dzah described the cocoa sector as struggling under the weight of funding constraints, weak sales strategy, and governance lapses.

“If these measures are carefully considered and implemented, the cocoa sector can be restored to its glory days,” he said.

Central to LICOBAG’s recommendations is an urgent review of the funding framework for cocoa purchases.

“We suggest a review of the current funding model to allow for a hybrid arrangement, combining the old syndicated facility, both local and international, with the current structure, to enable real-time payment for cocoa purchased and delivered to port by LBCs,” Mr Dzah stated.

To prevent further attrition among Licensed Buying Companies, the Association proposed introducing a limited seed-fund regime to help struggling operators remain afloat.

LICOBAG also called on government to secure emergency financing to pay for cocoa already produced.

“Government must, as a matter of urgency, secure a facility to pay for an estimated 300,000 metric tonnes of cocoa in a phased manner between now and September,” he said, warning that delays could deepen distress across the value chain.

On financial discipline, Mr Dzah stressed that funds raised for cocoa purchases must be protected from diversion.

“Funds secured for cocoa purchases must be ring-fenced and used strictly for that purpose, as the core business of COCOBOD is to purchase cocoa beans produced by farmers,” he said.

The Association also called for an immediate determination of the farmgate price to reduce uncertainty among farmers, buyers, and other stakeholders.

“A clear determination on the farmgate price is critical to allaying the apprehension of actors across the value chain,” Mr Dzah noted.

Regarding trade and marketing, LICOBAG urged COCOBOD, the Cocoa Marketing Company (CMC), and traders to adopt a more proactive sales strategy, supported by stronger oversight.

“CMC, COCOBOD and traders must be more proactive in their sales strategy to yield optimum results, while COCOBOD must increase supervisory oversight of the trading room,” he said.

Highlighting the need to rebuild professionalism within the sector, the Association called for capacity development and improved staff security.

“There is the need to develop the professional capacity of CMC cocoa traders and restore a credible succession plan that guarantees security of tenure, improves morale and enhances professionalism,” Mr Dzah said.

LICOBAG further called for a fundamental reset of cocoa sector reforms.

“Serious efforts must be made to revamp the cocoa industry beyond rhetoric and theatrics,” he said, urging COCOBOD to divest from non-core activities and refocus on effective extension services for farmers.

The Association also emphasised stronger institutional collaboration and improved communication between LICOBAG and COCOBOD.

“Government must make deliberate efforts to restore COCOBOD to its past glory by speeding up the passage of the new Act on pricing mechanisms,” Mr Dzah concluded.