Government Mandates 50% Local Processing of Cocoa Beans from 2026/27 Crop Season
Government has announced plans to mandate the local processing of at least 50% of Ghana’s cocoa beans, beginning from the 2026/2027 crop season, as part of efforts to deepen value addition in the sector.
Finance Minister Dr Cassiel Ato Forson disclosed this at a press briefing on Thursday, February 12, following an emergency Cabinet meeting convened a day earlier to address persistent challenges in the cocoa industry.
He said Cabinet has further approved the immediate revival of two key state-owned entities—the Produce Buying Company (PBC) and the Cocoa Processing Company (CPC)—to strengthen domestic participation across the cocoa value chain.
According to Dr Ato Forson, PBC will be restored to full operations and repositioned as the leading licensed buying company in the cocoa sector with immediate effect.
The decision comes against the backdrop of mounting liquidity pressures within the sector, with Licensed Buying Companies (LBCs) owed approximately GH¢2.04 billion by COCOBOD, leaving some cocoa farmers unpaid since November 2025.
Cabinet has also directed that all remaining cocoa beans for the ongoing 2025/2026 crop season be allocated for local processing, a move the government says underscores its commitment to value addition and job creation.
“With the new financing model, COCOBOD will have the flexibility to sell cocoa beans of any volume to local processing companies to promote value addition and employment,” the Finance Minister explained.
From the 2026/2027 season, the 50% local processing requirement will be made mandatory and embedded in a new Cocoa Board Bill expected to be laid before Parliament.
Dr Ato Forson noted that the revival of the state-owned Cocoa Processing Company will be prioritised to support the expanded domestic processing mandate.
“Pursuant to this directive, the Cocoa Processing Company will be revived as a matter of urgency to become the leading processor of Ghana’s cocoa beans,” he said.
Currently, Ghana processes an estimated 30–35% of its cocoa beans locally, with the majority exported in raw form to processing centres in Europe, Asia and North America.
The government believes increasing local processing to at least 50% will enable Ghana to capture greater value from its cocoa resources, create jobs, and reduce reliance on raw commodity exports.
The reactivation of PBC is also expected to restore competition in the cocoa purchasing market and improve payment reliability for farmers, particularly as private LBCs grapple with liquidity constraints.
