COCOBOD is facing the risk of defaulting on loans taken to support cocoa farming as smuggling activities continue to rise, according to Joseph Boahen Aidoo, CEO of Ghana COCOBOD.
Addressing the media in Kumasi, Mr. Aidoo raised concerns about the impact of increasing cocoa smuggling on the repayment of loans that fund various interventions for farmers.
These loans have been used to purchase essential inputs like fertilisers, pesticides, and cocoa seedlings.
“This year, we supplied more than enough fertilisers, such as liquid fertiliser, insecticides, and fungicides. Cocobod also funded the pruning of cocoa farms,” he explained.
However, with cocoa being smuggled out of the country, he questioned how COCOBOD would manage to repay these loans.
Mr. Aidoo revealed that smugglers are employing new methods, including using fuel tankers to transport cocoa out of Ghana.
“Given the severity of the issue, military involvement is now deemed crucial,” he added, explaining that COCOBOD has requested the assistance of the Ministry of Defence to tackle the problem.
The CEO emphasised that cocoa is vital to Ghana’s economy, providing the foreign exchange necessary to support the nation’s balance of payments.
“We cannot afford to lose our cocoa exports, especially since we heavily support local farmers,” he stressed.
The Anti-Cocoa Smuggling Program, funded by COCOBOD, will be led by the armed forces to clamp down on illegal activities.
Mr. Aidoo expressed optimism that these efforts, along with other initiatives to boost cocoa production, will yield positive results in the coming year, benefiting both the industry and farmers.