The Chief Executive of the Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo, has attributed the organization’s GH¢2 billion loss in 2021 to the decline in the international market price of cocoa.
He highlighted that the global cocoa price had witnessed a substantial decrease of over 30% in recent years, contributing significantly to the incurred losses.
During his appearance before the Public Accounts Committee (PAC) in Accra on Tuesday, Mr. Aidoo discussed the measures being explored to recover from these losses and restore profitability.
He reassured the committee that comprehensive plans are in progress to address the challenges arising from the declining cocoa prices, with strategies being implemented to mitigate further financial setbacks.
Mr. Aidoo emphasized the impact of the international market price on COCOBOD’s financial situation, stating, “Chairman we are on the path of a turnaround. COCOBOD’s financial situation is dictated by the international market Price, that’s the world cocoa price, and we all know that from 2017 to the date in question, the price of cocoa in the world market has collapsed by 30%. And in 2020 that is also when we had our highest production.
“So when prices collapsed at the time when we had increased yield. That is the direct cost and inventory go up whereas the revenue generated goes down.
“That is what explains the huge deficit for the particular year. Essentially yes we had record production, the prices at the international market did not favour us,” he stated.