LBCs ensure payment to cocoa farmers after much unrest

The Licensed Cocoa Buyers Association of Ghana (LICOBAG) declares that it will pay all monies due

The Ghana Authorized Cocoa Buyers Association (LICOBAG) has assured cocoa farmers in the country that it will pay them the money owed to them during the light harvest season.

It comes after continued unrest from some of the affected cocoa farmers who say they have yet to receive payment for cocoa supplied to some licensed cocoa purchasing companies (LBCs).

Speaking to reporters at a press briefing, LICOBAG President Samuel Adimado said the association is engaging with COCOBOD and farmers to resolve the issue and prevent it from happening again.

“We would like to point out that COCOBOD has no debt to cocoa farmers in Ghana. COCOBOD has already paid all cocoa farmers for the main season. The purchases for the light season are made by the LBCs, ”he said.

Shedding more light on the matter, Mr. Adimado explained that COCOBOD provides seed funding at the start of each cocoa season to all local LBCs and, on the other hand, the latter can collect certificates beyond funds. seed for COCOBOD to make additional payments.

He said that according to the law that regulates the operations of licensed purchasing companies, they are required to provide additional financing to operate the businesses, in addition to the seed funds provided by COCOBOD.

Mr Adimado observed that during the season some LICOBAG members experienced payment delays after collecting certificates due to the negative effect of the COVID-19 pandemic on international trade and marketing. outer cocoa.

“The other reasons were the closure of shipping ports and its consequent delay in shipments and the release of funds by international buyers, the substantial drops in the price of cocoa on the international market during the year, as well as the closure of many airports, hotels, and confectionery, where chocolate and other cocoa products are very popular, ”he said.

He called on all cocoa farmers who may have suffered a late payment in any way to draw the attention of the relevant LBC district officers, in case the purchasing clerks at the company / village level. in their communities have reportedly received funds and not yet received funds. make payments due to farmers after receiving their cocoa.

“LICOBAG and its members recognize the special status of cocoa producers as actors in our cocoa industry. Our members spend years building trust and lasting, mutually beneficial relationships with our dear farmers and participating in initiatives to improve our cocoa communities, ”he added.