The president of the Licensed Cocoa Buyers Association, Samuel Adimado, says delays in the cocoa payment system are driving farmers away from Licensed Buying Companies (LBCs).

He stated that many farmers now accuse buyers of withholding money, even as LBCs continue to move cocoa from farming communities.

Speaking on Joy News’ PM Express on Tuesday, Mr Adimado said his association had been forced to address what he described as a damaging perception that LBCs had collected cocoa, delivered it to COCOBOD, and refused to pay farmers.

“Our press conference was basically to clear the airwaves in terms of our relationship with our farmers,” he said.

He explained that under the current model, LBCs do not receive upfront funding from COCOBOD to purchase cocoa. Instead, the funding process is now “in the hands of traders.”

“This model is not the syndicated model where COCOBOD secures money and then give to us,” he said. “So basically the model is in the hands of traders.”

Mr Adimado said the delays have created a situation in which farmers directly blame LBCs, given the trust-based relationships between farmers and purchasing clerks in cocoa-growing communities.

“We have purchasing clerks, about 50,000 purchasing clerks in the various communities where farmers live,” he said.

He noted that, in many cases, farmers hand over cocoa even when purchasing clerks lack cash, relying solely on trust and the expectation that payment will come later.

“So in a situation where the purchasing clerk doesn’t even have money, the farmer will give his cocoa to the purchasing clerk… with the hope that when the LBC gives you money, I will be paid,” he explained.

But when payments are delayed under the current buying model, purchasing clerks cannot remit funds to farmers, and the issue becomes public.

“Some LBCs couldn’t send money to the purchasing clerks, and that is what came into the airwaves, as if LBCs had borrowed cocoa from farmers and had not been paying,” he said.

Mr Adimado stressed that LBCs are regulated by COCOBOD and operate within a fixed pricing system.

“COCOBOD fixed the price. Fix our margins,” he said.

He also rejected the idea that LBCs are refusing to pay farmers after receiving money.

“We have not… gone for the money from COCOBOD, and then we have refused to pay them,” he stated.

Mr Adimado said the association has a long record of supporting the cocoa business, including years of pre-financing cocoa purchases through bank borrowing.

“For the past seven years, the LBCs have been pre-financing the cocoa business,” he said.

He recalled that in the 2023/24 season, LBCs borrowed from banks, delivered cocoa to COCOBOD, and waited months for payment.

“In 2023/24… it took nine months before we were paid, nobody heard of us,” he said.

He added that LBCs wrote to COCOBOD to request compensation for the delays, but were not compensated.

Looking at the current season, he said some members borrowed again, but the pressure has worsened because traders have not come to take the cocoa.

“We owe the banks more than we even owe the farmers,” he said, adding that the money borrowed was meant to support cocoa purchases, “with the hope that the traders will come for the cocoa. They have not come for it.”

He said the reasons include “terminal price issues” and “the contractual aspect.”

Mr Adimado also confirmed that COCOBOD owes LBCs significant sums, with the outstanding amount between ¢10 billion and ¢11 billion.

He added that the problem extends beyond the current season, noting that some members from earlier periods are still owed.

“Some of our members, 2025/26… have not been paid,” he said, adding: “To the tune of $185 million they’ve not been paid.”

Despite the tensions, Mr Adimado insisted LBCs are not fighting COCOBOD, but want the system fixed to protect farmers, buyers, and the wider cocoa economy.

“The good thing is that we’ve been engaging with COCOBOD… There are good indication that… Minister of Finance, would… address this issue,” he said.