Ghana cocoa buyers say Cocobod financing delays hindering purchases

Licensed cocoa buyers in  the country have raised concerns over the delay of payment by Cocobod.

The buyers  on Monday chided a weeks-long delays in the release of financing by industry regulator Cocobod, saying it was hindering their ability to purchase the beans needed to fill their supply contracts.

Ghana, the world's second biggest cocoa producer, has around 20 active Licensed Buying Companies (LBC), which sign rolling contracts to supply specific amounts to Cocobod. Many receive an advance which they repay when the cocoa is delivered under a schedule that includes the buyers margin, evacuation cost and a bonus.

"January 27 was the last time we got paid an advance by Cocobod. Since then no money. It has crippled our operations because it's working capital which is locked up," said one senior official at a cocoa buyer.

A report by the  Reuters indicates that Seven buying companies  said they were facing similar financing crunches due to Cocobod delays, which they said were the worst in years.

All declined to be named for fear of antagonising the regulator, which some said had promised to resume the payments later this month.

However Cocobod spokesman said he was unaware of the problem.

Two Netherlands-based traders said they were aware of reports of delays but had not seen a decrease in volumes, likely because there were sufficient stocks already at Ghana's two ports to avoid a slowdown.

Cocobod forecasts production in Ghana of about 800,000 tonnes in the 2016/17 season, down from an earlier forecast of up to 900,000 tonnes.

 Cocobod raises an annual loan - around $1.8 billion this season - to pay for cocoa purchases.

By:Fiifi Abdul Malik