Ghana’s state controlled cocoa purchasing firm, Producer Buying Company, is reportedly unable to continue buying cocoa from farmers after an overwhelming debt burden of 673 million cedis pushed the company to the brink of asset seizure, according to a source familiar with the company’s internal operations.
The crisis has exposed growing instability within Ghana’s cocoa sector and intensified concerns over the welfare of thousands of smallholder farmers who depend heavily on timely payments during the cocoa season.
PBC, which is legally required to purchase cocoa from any farmer as the buyer of last resort, has traditionally played a central role within Ghana’s cocoa marketing structure. In February, the government publicly committed itself to restoring the company to its former prominence as the country’s dominant cocoa buying institution. Yet barely three months after those assurances, the company is now struggling to remain operational.
According to the source, PBC currently owes cocoa farmers nearly 24 million cedis for more than 9,000 bags of cocoa that have already been delivered. The company is also said to be facing severe liquidity challenges that have effectively halted fresh purchases from growers across several cocoa producing communities.
The financial difficulties escalated further in March after a consortium of Ghanaian banks reportedly secured a court directive permitting the sale of the company’s assets over an outstanding debt of 257 million cedis. The development has heightened fears that the once influential cocoa buyer could face a dramatic institutional collapse if immediate intervention is not secured.
The broader cocoa industry in Ghana has itself been battling difficult market conditions. The sector has been weakened by declining global cocoa prices, substantial harvest volumes from competing producers, and reduced appetite from international chocolate manufacturers. Those pressures have strained the finances of buying companies and complicated efforts to maintain stable payments to farmers.
PBC’s own troubles have been compounded by a dramatic erosion of its market dominance. The company once accounted for roughly 30 percent of Ghana’s domestic cocoa purchases, yet it now reportedly handles less than 5 percent of national cocoa output. That sharp decline has significantly weakened its revenue base and reduced its competitiveness against private licensed buying firms.
The worsening situation threatens to deepen economic hardship within cocoa growing communities, particularly for farmers who have reportedly gone unpaid for cocoa deliveries dating back to November 2025.
The company source disclosed that Ghana Cocoa Board, commonly known as COCOBOD, has still not reimbursed PBC for approximately 800 metric tons of cocoa supplied more than two months ago. Under Ghana’s cocoa marketing framework, licensed buying companies purchase cocoa directly from farmers before selling the beans to COCOBOD, which subsequently exports the commodity to international buyers.
Despite repeated appeals for financial assistance, the source indicated that neither the Finance Ministry nor COCOBOD has provided direct support to the struggling company. Both institutions also declined to respond to requests for official comment regarding the matter.
In February, Finance Minister Cassiel Ato Forson had publicly declared that reviving PBC formed a major part of the government’s broader strategy to strengthen support systems for cocoa farmers and ensure transparent market access alongside fair producer pricing. However, the source stated that since those remarks were made, there have reportedly been no substantive engagements between the minister and the company regarding a recovery roadmap.
Although COCOBOD maintains that it has been releasing funds to licensed buying companies, the source insisted that PBC has not benefited from any such disbursements.
Beyond its obligations to farmers and banks, PBC is also weighed down by more than two years of unpaid staff salaries, accumulated vendor liabilities, and outstanding statutory obligations. The company’s financial distress therefore extends beyond liquidity shortages and now affects workers, suppliers, and institutional creditors alike.
Two of the five banks that obtained the court order to dispose of PBC assets are state owned institutions that operate under the oversight of the Finance Ministry, adding another layer of complexity to the unfolding crisis.
The Social Security and National Insurance Trust, widely known as SSNIT and one of PBC’s major shareholders, has also reportedly resisted injecting additional capital into the company after failing to receive anticipated returns on its earlier investment.
Nevertheless, the company source believes recovery remains possible if COCOBOD introduces a structured intervention strategy. Such a plan, according to the source, could involve directing a larger share of international cocoa purchasing arrangements toward PBC while simultaneously releasing funds to support immediate cocoa purchases from farmers.
Despite its weakened financial standing, PBC still maintains one of the most extensive operational networks in Ghana’s cocoa industry, with a presence across all 127 cocoa growing districts. That nationwide footprint continues to position the company as one of the most strategically important institutions within Ghana’s cocoa economy, even as it confronts one of the gravest financial crises in its history.
