Ghana’s cocoa regulator has accused some licensed buying companies of purchasing smuggled cocoa beans from neighbouring countries, warning that the practice could damage the international reputation of Ghanaian cocoa exports.
The allegations come amid growing financial strain within Ghana’s cocoa sector, where licensed buyers and regulators are already locked in disputes over debt, delayed payments and liquidity shortages.
Jake Kudjo Semahar, director of special services at the Ghana Cocoa Board (Cocobod), said some Licensed Buying Companies (LBCs) had been purchasing cheaper cocoa beans smuggled mainly from Ivory Coast before mixing them with locally produced cocoa destined for export markets.
“The mixing of foreign cocoa with Ghanaian beans undermines the premium quality associated with Ghana cocoa,” Semahar told Reuters.
He said investigations into the practice were under way but did not identify the companies involved.
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Ghana and Ivory Coast together account for more than half of global cocoa production and are among the world’s leading suppliers to international chocolate manufacturers.
Ghanaian cocoa traditionally commands a premium on world markets because of its perceived quality standards and stricter post-harvest handling processes.
According to Cocobod officials, significant price differences between the two countries have created incentives for cross-border smuggling.
Semahar said cocoa beans sourced from Ivory Coast could be purchased at around 1,200 Ghanaian cedis ($106) per 64-kilogram bag, compared with approximately 2,587 cedis (US$229) paid to farmers in Ghana.
The price gap has reportedly encouraged illegal inflows of cocoa into Ghana, where buyers can potentially profit by blending lower-cost beans into export consignments.
The Ghana Licensed Cocoa Buyers Association rejected suggestions of organised involvement in smuggling activities.
The association said any illegal trade was likely being conducted by individual middlemen acting independently rather than by licensed companies as institutions.
The controversy has emerged during a difficult period for Ghana’s cocoa industry, which is facing financial pressures linked to lower global prices, reduced liquidity and mounting debt obligations.
Licensed buying companies have repeatedly complained about insufficient working capital during the current 2025/2026 cocoa season.
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In March, the buyers warned of a liquidity crisis affecting their ability to purchase cocoa from farmers despite funding support announced by Cocobod.
The regulator has said it mobilised around 4.2 billion cedis (US$372 million) to support cocoa purchasing operations.
However, industry representatives argue that much of the funding was used to settle overdue obligations rather than provide fresh operational capital.
The buyers’ association also disclosed earlier this year that its members collectively owed local banks as much as $750 million from pre-financing arrangements linked to previous cocoa seasons.
Analysts say the financial difficulties facing cocoa buyers could increase incentives for irregular trading practices as companies struggle to maintain operations and meet obligations.
The cocoa sector remains one of Ghana’s most important sources of export revenue and rural employment.
Authorities expect national cocoa production to exceed 650,000 metric tons during the current season, compared with about 600,000 tons last year.
However, the sector has faced multiple challenges in recent years, including disease outbreaks, climate pressures, illegal mining activity affecting farmland and widespread smuggling across porous borders.
Industry observers warn that preserving Ghana’s quality reputation will remain critical for maintaining premium pricing in international markets as competition intensifies among global cocoa producers.
Cocobod officials say efforts to strengthen monitoring and enforcement along border regions are continuing as part of broader measures to protect the integrity of Ghana’s cocoa exports.
