Ghana Cocoa Board Implements Salary Reductions for Executives and Senior Staff Amid Liquidity Pressures

The Ghana Cocoa Board (COCOBOD) has introduced salary cuts for its executive management and senior staff, effective Monday, February 16, 2026, as part of urgent measures to address severe liquidity constraints in the cocoa sector.

In a press release issued the same day, COCOBOD confirmed that executive management will take a 20% reduction in pay, while senior staff will accept a 10% cut for the remainder of the 2025/2026 crop year. The decision follows a comprehensive review of the board’s financial position, which has been strained by lower-than-expected revenue, rising operational costs, and ongoing challenges in the global cocoa market.

The salary adjustments are accompanied by additional cost-control steps, including:

• Tighter procurement processes

• A staff rationalization exercise aimed at aligning overall expenditure with available income.

COCOBOD stated that these measures are essential to maintain financial stability and continue supporting cocoa farmers and industry stakeholders during a difficult period. The Chief Executive signed the release, directing inquiries to the Public Affairs Department (Direct Line: 0302 66-66-66; Email: public_affairs@cocobod.gh).

Cocoa Under Mahama 

Since President John Dramani Mahama returned to office in January 2025, his administration has prioritized reforms in the cocoa sector to restore farmer confidence and improve sector sustainability. Key recent efforts include:

• Increased Farmgate Prices: In October 2025, the government raised the producer price for the 2025/2026 main crop season to GHS 48,000 per tonne  – a significant increase from previous years – in an attempt to curb smuggling and incentivize production.

• Debt Resolution with Licensed Buying Companies (LBCs): The administration has accelerated payments to LBCs and cooperatives, clearing long-standing arrears to ensure timely payments to farmers.

• Input Subsidy Expansion: Subsidies for fertilizers, pesticides, and planting materials have been scaled up, with a focus on reaching smallholder farmers in remote areas.

• Smuggling Crackdown: Enhanced border surveillance and collaboration with neighboring countries have reduced cocoa smuggling, particularly to Côte d’Ivoire.

Despite these steps, liquidity challenges persist due to volatile global cocoa prices, delayed export receipts, and structural debts inherited from previous administrations.

State Regulators vs Farmers

Tensions have emerged between COCOBOD, the Ghana Cocoa Marketing Company (COCOBOD’s marketing arm), and farmers’ groups. Farmers have criticized:

1. Delays in payments and deductions for loans or inputs.

2. Perceived lack of transparency in pricing and revenue sharing.

3. Insufficient consultation on policy changes, including the salary cuts now affecting board staff.

The Ghana Cocoa Farmers Association and other groups have called for greater farmer representation on COCOBOD’s board and more direct involvement in price-setting mechanisms. Some farmers view the executive pay reductions as symbolic but insufficient.

Global Cocoa Price Trends

Global cocoa prices have experienced extreme volatility in the 2025/2026 season:

The salary reductions at COCOBOD reflect the broader strain on the sector, even as global prices remain historically elevated compared to pre – 2024 levels. Farmers and industry stakeholders continue to press for long-term reforms to stabilize incomes and ensure the sustainability of Ghana’s cocoa industry, the world’s second-largest producer.