The CEO of the Ghana Cocoa Board, Joseph Boahen Aidoo, has revealed the substantial financial hurdles he confronted upon assuming office in January 2017.
During an interview on Joy FM’s Super Morning Show, Mr. Aidoo disclosed that despite the previous administration securing $1.8 billion in 2016, there were no remaining funds when he assumed leadership of Cocobod.
He explained that the funds had been utilized for purchasing cocoa and covering operational expenses.
“They bought about 600,000 metric tonnes before we came in. With cocoa, the peak harvest period is October, November, December, and January. So within the first quarter of the season, from October to December 2016, the previous administration bought over 600,000 metric tonnes.
“When we assumed office, there was no money, meanwhile, we had to buy cocoa till the end of the season from January to September,” he said.
Upon taking office, Mr. Aidoo observed that Cocobod was confronted with the formidable challenge of continuing cocoa purchases without any funds.
He indicated that the most viable solution was for Cocobod to seek help from the Bank of Ghana.
“We were forced to go to the Bank of Ghana to borrow. Within that period, we bought over 300,000 metric tonnes and we had to pay the farmers, we had to pay for haulage, the buyer’s margin, and operational costs.
“We sought help from the Bank of Ghana who became an intermediary between the Board and the consolidated banks and we got over GH₵2 billion,”he explained.
Ghana’s cocoa industry has grappled with adverse weather conditions, bean diseases, and illegal gold mining, which often displaces cocoa farms.
Additionally, Ghanaian farmers have been smuggling more beans to neighboring countries to capitalize on higher prices, further depleting the available crop for domestic delivery.
Reports indicate that Ghana, the world’s second-largest cocoa producer, is contemplating delaying the delivery of up to 350,000 tons of beans to the next season due to poor crops.
Consequently, chocolate makers worldwide are increasing prices for consumers in response to cocoa prices doubling this year, driven by a third consecutive year of poor harvests in Ghana and Ivory Coast, which together account for 60% of global production.