In a major move to address the escalating financial crisis within the cocoa sector, COCOBOD announced on Monday, February 16, 2026, that its top leadership
and senior staff have accepted significant salary reductions.
This "shared sacrifice" comes just days after the government was forced to slash the cocoa producer price by 28.6% (from GH₵3,625 to GH₵2,587 per bag) due to a collapse in global market prices, which fell from over $10,000 to roughly $4,000 per tonne.
Breakdown of the Pay Cuts
The salary reductions are effective immediately and will remain in place for the duration of the 2025/26 crop year.
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Executive Management: 20% reduction (including the CEO, Dr. Randy Abbey).
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Senior Staff: 10% reduction.
The Core Objective
The Board stated that these measures, along with a staff rationalization exercise and procurement reforms, are designed to:
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Align expenditure with revenue: Ghana currently holds over 50,000 metric tons of unsold cocoa beans because international buyers found the previous prices uncompetitive.
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Restore Liquidity: COCOBOD faces a debt crisis exceeding GH₵33 billion, including nearly GH₵10 billion owed to Licensed Buying Companies (LBCs) and farmers.
2026 Structural Reforms: Beyond Salary Cuts
The salary reductions are only one part of a broader overhaul of the cocoa industry announced in February 2026.
1. Shift to Domestic Financing
The traditional international syndicated loan model has been abandoned. Under the "Accra Reset" philosophy, the government is moving to a Domestic Cocoa Bond framework to purchase beans using Cedis rather than foreign loans.
2. Local Processing Mandate
To reduce exposure to global price swings, President Mahama recently announced that starting in the 2026/27 season, at least 50% of Ghana's cocoa must be processed locally.
The Bottom Line
While the salary cuts are symbolic of a leadership taking responsibility, the real test for COCOBOD in 2026 will be its ability to clear the massive arrears owed to farmers. The "Addis Reckoning" and the move toward domestic bonds signal a desire to never again rely on the volatile international markets that caused this current liquidity "seizure."
