Ghana’s state-owned cocoa buyer, Producer Buying Company, is unable to purchase cocoa due to 673 million cedis debt, facing asset seizure, a company source said.
The firm, legally a buyer of last resort, has also accumulated unpaid obligations to farmers and lacks liquidity to continue operations.
It owes growers 24 million cedis for more than 9,000 cocoa bags already delivered, deepening financial strain across the supply chain.
A consortium of Ghanaian banks secured a court order in March to sell the company’s assets over 257 million cedis in debt.
Ghana’s cocoa sector is under pressure from global oversupply, weaker prices and declining demand from chocolate manufacturers worldwide.
PBC’s market share has collapsed from around 30 percent to below five percent, worsening hardship for smallholder farmers nationwide.
Thousands of farmers remain unpaid for cocoa delivered since November 2025, adding to rising rural financial distress.
The company source said COCOBOD has not reimbursed PBC for 800 metric tons of cocoa delivered more than two months ago.
Under Ghana’s system, PBC buys from farmers and sells to regulator COCOBOD, which exports cocoa to international buyers.
Neither the finance ministry nor COCOBOD has responded to repeated requests for assistance or comment on the unfolding crisis.
Finance Minister Cassiel Ato Forson had promised in February to revive PBC as part of broader cocoa sector reforms.
However, the company source said no subsequent discussions have taken place, leaving promised support effectively stalled.
COCOBOD says it is disbursing funds to buying companies, but PBC insists it has received no financial support.
PBC’s debts also include 24 months of unpaid salaries, vendor arrears and statutory obligations alongside its major bank liabilities.
SSNIT, the state pension fund and key shareholder, has been reluctant to inject new capital after missing expected dividends.
A structured intervention through COCOBOD could stabilise operations if funds and market allocations are redirected to the struggling buyer.
Operating across 127 cocoa-growing districts, PBC retains nationwide reach despite its deepening financial crisis and shrinking market influence.