Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo, has formally submitted his resignation.
His decision comes in response to a recent government directive asking all boards of State-Owned Enterprises (SOEs) to cease operations.
In his resignation letter to President John Dramani Mahama, Mr. Aidoo expressed his gratitude to former President Nana Addo Dankwa Akufo-Addo, the New Patriotic Party (NPP) government, and the people of Ghana for the opportunity to lead COCOBOD over the past eight years.
“This opportunity has been an incredible honour, and I am deeply grateful for the trust placed in me,” he wrote.
Though Mr. Aidoo’s appointment under the COCOBOD Law, 1984 (PNDCL 81) was set to end in July 2025, he chose to resign earlier in order to ensure a smooth transition. He highlighted the importance of giving stakeholders and business partners sufficient time to form relationships with the incoming leadership.
“I have chosen to step aside earlier to ensure a smooth transition and enable stakeholders and business partners to establish timely connections with the incoming head of the institution,” he stated.
He reiterated his dedication to Ghana’s cocoa industry and pledged his support for any necessary transition processes.
Reflecting on his time at COCOBOD, he described his tenure as fulfilling and insightful.
“I remain committed to the advancement of Ghana’s cocoa sector and stand ready to support any transition processes that may be required,” he noted.
The Ghana Cocoa Board plays a vital role in the nation’s economy, overseeing the production, regulation, and marketing of cocoa, which is a significant export and source of revenue for Ghana.
The Ghana Cocoa Board (COCOBOD) has expressed its commitment to ramping up efforts to tackle cocoa smuggling across the nation’s borders, with the assistance of the military.
The Board acknowledged being greatly concerned by the rising incidents of cocoa smuggling within the country.
COCOBOD’s Chief Executive, Joseph Boahen Aidoo, shared this information with journalists following a meeting with cocoa farmers from various cultivation areas at the GNAT Hall in Kumasi last Friday.
“We have written to the Minister of Defense, requesting military intervention, while the police and other security forces have been assisting,” he stress.
Aidoo noted that there had been several arrests related to cocoa smuggling and “recently cocoa being transported out of the country in tankers for fuel was intercepted.”
He mentioned that the military involvement was now necessary to address the issue more effectively and indicated that, “the military has expressed readiness to lead the operation and the Defense Ministry is fully aware” adding that COCOBOD would sponsor the national anti-cocoa smuggling campaign.
The stakeholder consultative dialogue aimed at fostering Ghana’s cocoa sector which had in recent years been fraught with financial and environmental challenges.
Additionally, he noted that the intensified exercise was crucial for safeguarding the country’s cocoa export industry, and to also ensure that it meets its international export targets.
He expressed confidence that the military’s intervention would help curb the problem, and assured of the government’s commitment to protecting the cocoa sector and would do everything to prevent its collapse.
Aidoo used the occasion to allay the fears of cocoa farmers and Ghanaians about the looming European Union (EU) regulation on deforestation that takes effect from December 30, 2024.
Moreover, he said the deforestation regulation that came into force on June 29, 2023, required companies trading in cattle, cocoa, coffee, oil palm, rubber, soya and wood, as well as products derived from these commodities, to conduct extensive diligence on the value chain.
This, he said, was to ensure the goods did not result from recent (post 31 December 2020) deforestation, forest degradation or breaches of local environmental and social laws.
He said companies should consider the impact of the deforestation regulation on their supply chain due diligence to prepare for the new obligations.
Aidoo mentioned that Ghana was really prepared because, “it is the only cocoa growing country in Africa with a traceability system to track products from the forests in order to curb the EU market’s impact on global deforestation and forest degradation.”
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.
Joseph Boahen Aidoo, Chief Executive of the Ghana Cocoa Board, announced that the new cocoa crop season price will be revealed on September 11, 2024.
Speaking to farmer associations from the 70 cocoa-growing districts in Kumasi on September 6, Aidoo explained that the announcement was delayed due to the President’s travel commitments.
The initial plan was to begin the season on September 1, but the President’s schedule did not permit this.
With the President expected to return this weekend, the new price will be officially announced next Tuesday. “We sent our letter late to the President, requesting him to open the new season on the 1st of September. However, the President’s existing schedule made this impossible.
“The President is currently out of the country and will return this weekend. Therefore, I want to assure you that the President will announce the new cocoa price next Tuesday. I can assure you that the new price will be satisfactory to you farmers,” he assured.
Aidoo reassured farmers that the new price will be favorable and encouraged them to trust in the Ghana Cocoa Board’s management.
He also urged the government to strengthen its efforts against illegal mining, known as Galamsey, which poses a significant threat to the cocoa industry in Ghana.
An exposé shared by the Gh Chronicles Twitter handle has raised serious allegations against Joseph Boahen Aidoo, the Chief Executive Officer (CEO) of COCOBOD, suggesting his involvement in a questionable transaction.
The report claims that the COCOBOD CEO awarded lucrative contracts worth billions to his son.
According to the allegations, a company named Agri-Plus Horizon Farm Limited, reportedly owned by Joseph Seth Aidoo Jnr., who is believed to be the son of the COCOBOD CEO, was granted an exclusive contract.
This contract allegedly involved the sole supply of 75,000 litres of Transform Akate Insecticide at a rate of US$103.5 per litre, amounting to a total of US$7,762,500.00.
It is further alleged that Agri-Plus Horizon Farm Limited subcontracted the supply of this insecticide to Dow AgroSciences Limited (DOW), a company based in the UK.
These allegations have sparked a wave of mixed reactions among netizens, fueling a heated debate on social media.
Chief Executive Officer of the Ghana Cocoa Board (Cocobod), Joseph Boahen Aidoo, recently shared the significant financial challenges he encountered when he took office in January 2017.
Speaking on Joy FM’s Super Morning Show, Mr. Aidoo disclosed that despite the previous administration securing $1.8 billion in 2016, there were no funds left when he assumed leadership of Cocobod.
According to Mr. Aidoo, the money had been spent on purchasing cocoa and covering other operational costs.
“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,” he explained.
“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 continued.
This left Cocobod in a precarious position, needing to continue cocoa purchases without any available funds.
Faced with this daunting task, Mr. Aidoo and his team sought assistance 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,” he said.
The Bank of Ghana acted as an intermediary between Cocobod and consolidated banks, facilitating a loan of over GH₵2 billion to keep operations running.
The cocoa industry in Ghana has been beset by numerous challenges, including adverse weather conditions, bean diseases, and illegal gold mining activities that displace cocoa farms.
Additionally, Ghanaian farmers have been smuggling more beans to neighboring countries to sell them at higher prices than those offered by the state purchasing price, further diminishing the available crop for delivery in Ghana.
Recent reports indicate that Ghana, the world’s second-largest cocoa producer, is considering delaying the delivery of up to 350,000 tons of beans to the next season due to poor crop yields.
This situation has led chocolate makers worldwide to raise prices for consumers, as the value of cocoa has more than doubled this year following a third consecutive year of poor harvests in Ghana and Ivory Coast, which together account for 60% of global production.
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.
Member of Parliament for Tamale Central Constituency, Ibrahim Murtala Muhammed has taken aim at the Chief Executive of Ghana Cocoa Board (Cocobod), Joseph Boahen Aidoo, accusing him of failing to bring about substantial improvements to the cocoa sector during his tenure.
Muhammed expressed disappointment, asserting that Aidoo has fallen short in effectively addressing the significant challenges plaguing cocoa overproduction.
In an exclusive interview on Citi TV, Muhammed called for the resignation of the Chief Executive, citing perceived indifference and a lack of tangible progress since Aidoo assumed office.
During the interview, Muhammed highlighted the persistent nature of the issues, drawing parallels between Aidoo’s current administration and his past role.
Muhammed criticised Aidoo’s approach, asserting, “When you appear before a Public Account Committee, you are supposed to be telling us the solutions you have provided in solving some of the problems. What the CEO of the Cocoa Board did was lament throughout, telling us the problems Cocoa Board is facing. My question is simple: you were appointed to provide solutions to problems. What measures are you putting in place to overcome them? If there was a problem last year and you were brought in to resolve it and couldn’t, don’t you think it’s fair to call for your resignation?”
The organisation in 2021 faced a GH¢2 billion loss which it attributed to the significant decline in the international market price of cocoa.
Speaking before the Public Accounts Committee (PAC) in Accra, Mr Aidoo highlighted the challenges posed by the sharp drop of over 30% in cocoa prices on the global market in recent years.
He emphasized that this decline, coupled with increased production, contributed to the substantial loss incurred by COCOBOD.
“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.
Watch video below:
Ibrahim Murtala Muhammed, the Member of Parliament for TAMALE CENTRAL Constituency, is demanding the resignation of Joseph Boahen Aidoo, Chief Executive of Ghana Cocoa Board (Cocobod).
This call comes in response to Aidoo's alleged failure to address the decline in cocoa… pic.twitter.com/4MOnyMJGRP
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.
This revelation poses a significant threat to the country’s cocoa production.
During a panel discussion at a World Cocoa Foundation (WCF) partnership meeting in Amsterdam, Mr. Aidoo acknowledged the gravity of the challenge.
However, he offered assurances that comprehensive measures have been implemented to tackle the CSSVD issue and prevent further devastation.
In addition to CSSVD, Mr Aidoo emphasised the adverse effects of illegal mining and climate change on cocoa production in Ghana.
The unregulated mining industry is causing deforestation, soil degradation, and water pollution, negatively impacting cocoa tree growth.
Climate change, with rising temperatures, unpredictable rainfall, and prolonged droughts, is further compromising cocoa tree health and reducing output.
To combat the CSSVD challenge, COCOBOD initiated the Cocoa Rehabilitation Programme in 2018.
This program aims to halt the spread of the disease, restore unproductive farms, and enhance the livelihoods of cocoa farmers.
Activities under the rehabilitation program include identifying diseased farms, cutting down affected trees, replanting with disease-resistant cocoa varieties, compensating affected farmers, and promoting good agricultural practices.
Mr Aidoo underscored the significance of ensuring sustainable incomes for cocoa farmers, citing initiatives like the Living Income Differential (LID) and recent substantial increases in Ghana’s Producer Price for cocoa farmers as crucial steps forward.
Despite these efforts, Mr. Aidoo stressed the necessity for a collective commitment across the industry to prioritize the sustainable incomes of cocoa farmers, backed by concrete actions to ensure their realization.
The Director General of Conseil du Café Cacao, Mr. Yves Brahima Koné, echoed concerns about the significant threat CSSVD poses to West African cocoa production.
The Ghana Cocoa Board (COCOBOD) has declared that it will cease its involvement in the construction of cocoa roads nationwide once the ongoing projects are completed.
Initially launched to address the logistical difficulties in supplying agro-inputs to cocoa farmers and transporting cocoa beans to Take Over Centres, the Cocoa Road Programme by COCOBOD is undergoing a shift in policy.
Speaking at the 50th Anniversary Celebration symposium of the Cocoa Clinic, the CEO of COCOBOD, Joseph Boahen Aidoo, revealed that this change is the outcome of negotiations with the European Union and the International Monetary Fund (IMF).
“Last year, the EU conducted a thorough examination of sustainable production practices. During their assessment, they raised questions about COCOBOD’s involvement in cocoa road construction, citing that it falls outside our core responsibilities. The IMF has expressed similar sentiments. Both entities recommend that we focus on our ongoing construction projects and refrain from initiating new ones.”
Nonetheless, Joseph Boahen Aidoo also unveiled COCOBOD’s intention to establish healthcare facilities within various cocoa-growing communities across the nation, aimed at enhancing healthcare accessibility for cocoa farmers.
“I have personally witnessed the plight of a woman in labor, unable to give birth, being transported over 28 kilometers in a hammock, ultimately leading to a tragic outcome. Observing the challenges our cocoa farmers endure to access healthcare in rural areas has spurred us to take action. As an organization, we recognize the importance of bringing healthcare services and facilities as close as possible to these farmers.”
Chief Executive Officer (CEO) of Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo, has proclaimed his support for Dr. Mahamadu Bawumia’s presidential ambition, as well as emphasizing the importance of his expertise and vision for the digital era.
According to him, the rapid evolution of the world and the transformative power of technology calls for a leader who can harness the potential of the fourth industrial revolution and drive Ghana’s progress in the digital space.
He added that in an era marked by unprecedented advancements and breakthroughs, the world has witnessed remarkable shifts from the n period to the agricultural and industrial revolutions it is crucial to have a leader who comprehends the possibilities and opportunities that lie ahead.
“For the sake of the future let’s support Dr Bawumia.
“The world is evolving at an unprecedented pace. We’ve come a long way from the Neolithic era to the Agricultural and Industrial Revolutions. Now, we stand at the cusp of the 4th Industrial Revolution – the age of digitization. With technology changing the way we work and live, it’s more important than ever to have a leader who understands the potential of this new economic era.
“With his vision, we can build a nation that will be at the forefront of revolutionizing the digital space for the benefit of future generations,” he said in a Facebook post on May 10, 2023.
Dr. Mahamudu Bawumia has declared his intention to contest for the New Patriotic Party (NPP) presidential flagbearership bringing the official number of people who have declared their intentions to contest to nine.
They include the former Minister of Trade and Industry, Alan Kyerematen; the former Minister of Food and Agric, Dr. Owusu Akoto Afriyie; Member of Parliament for Assin Central, Kennedy Agyapong; former MP for Essikado-Ketan, Joe Ghartey; and a former MP for Mampong, Francis Addai-Nimoh.
John Dramani Mahama’s assertion that Ghana’s cocoa industry has collapsed has been refuted by the Ghana Cocoa Board (COCOBOD).
The former president had claimed that it now takes three months for farmer to receive their cash for cocoa beans.
Mahama also added that the cocoa farmers no longer enjoy free fertiliser as they used to during the period of the NDC.
But in a statement, COCOBOD said, “The notion of a collapsing cocoa industry. Such statements are misleading and detrimental to a vital sector like cocoa, which forms the foundation of Ghana’s economy. We, therefore, wish to use the opportunity to make some clarifications and also set the records straight.
“It is widely acknowledged that galamsey operations pose a significant danger to our nation, and any attempts to justify or rationalise the conversion of a piece of land, especially a cocoa farm, into a Galamsey site, like the former president sought to do, must be met with contempt.”
The statement added “this menace has the potential to negate all the investments made by the government to modernise cocoa farming and improve productivity. It is, therefore, crucial that prominent figures in our society exercise caution when making public statements that rationalize cocoa farmers trading their farms for temporary monetary benefit through illegal mining.
“Management also wishes to place on record, that the Former President’s statement regarding the increase in cocoa producer prices every year during his administration is inaccurate, since the records available point to the opposite. Specifically, there was no upward adjustment of the producer price of cocoa in the 2012/2013 Crop Season. Similarly, the producer price of the preceding season was maintained for the 2015/2016 Crop Season, with no upward adjustment.”
The Ghana Cocoa Board (COCOBOD) is lamenting over the economic impact of illegal mining activities.
He said activities of illegal mining (galamsey) operators in some cocoa growing areas of the country, which it describes as making farming expensive.
According to the Chief Executive of COCOBOD, Joseph Boahen Aidoo, the menace is adversely affecting water resources, used for irrigation, thereby destroying the environment.
He was speaking to joy Business after inaugurating a committee to promote the consumption of cocoa in the country.
The nine member committee chaired by the Deputy Director of Public Affairs of COCOBOD, Fiifi Boafo, is to ensure adequate promotion of cocoa products and domestic consumption in all sectors of the economy.
“The issue of Galamsey has become a serious concern for not only cocobod but the whole country and when you look at the impact on our farmers and irrigation, it is very serious”.
“Now we struggle to get surface water for irrigation processes and I can tell you that very soon the rivers we rely on for our irrigation will be filled with silt and we can’t even get water to do irrigation”, he mentioned.
He added that the activities of the illegal miners has made farming very expensive in the last couple of years, especially “for our cocoa farmers because of these water crises and all that.”
Menawhile, the country’s consumption of cocoa and chocolate products have increased significantly from an average of 0.5 to one kilogramme annually, according to the Ghana Cocoa Board.
This, it describes as a huge milestone, considering the low level of consumption in the country previously.
The world’s two largest producers of cocoa will not attend the gathering, which is the premier international conference on cocoa sustainability, according to Reuters.
Both the Ghana Cocoa Board (COCOBOD) and the Coffee and Cocoa Council (CCC) of the Ivory Coast have stated that the reason for their boycott of global chocolate corporations is because these businesses oppose policies that would increase the income of farmers.
Therefore, “the Chief Executive [Joseph Boahen Aidoo] is not attending the World Cocoa Foundation (WCF) meeting in Belgium and none of the executives at Cocobod will be there,” he affirmed.
Boafo accused the multinational chocolate companies of waging a silent war against a farmers’ premium, the Living Income Differential, as a direct rejection will give them bad publicity.
Adding his voice, the Director General of Ivory Coast’s Coffee and Cocoa Council (CCC), Yves Brahima Kone, also said he will not be in attending this or any other industry meetings.
He further stated that sustainability programmes launched since 2008 and aimed at tackling issues such as child labour have also benefited companies more than farmers.
Two premiums paid on Ghana and Ivory Coast cocoa beans to help alleviate farmer poverty have in recent years suffered massive discounts by chocolate companies, eroding the intended purpose.
The origin differential, an additional premium paid for the quality and reliability of cocoa beans and the Living Income Differential is a fixed amount of $400 agreed on for every tonne of cocoa sold by Ivory Coast and Ghana.
In July both regulators said they would no longer sell cocoa with a negative origin differential, fixing it at zero for Ivory Coast and at +20 pounds sterling ($22) per tonne for Ghana.
COCOBOD and CCC explained that some of the world’s major chocolate makers and cocoa traders are pushing for origin differentials as low as negative 200 pounds sterling per tonne.
“We are considering new ways to address this issue with the industry, including banning access to our cocoa farms for their sustainability programs,” The Director General of CCC said.
The World Cocoa Foundation Partnership meeting will be held from October 26-27 at The Hotel in Brussels, Belgium.
Ivory Coast and Ghana will not be attending the World Cocoa Foundation Partnership meeting scheduled to be held in Brussels from October 26-27.
The meeting which is the leading global conference on cocoa sustainability will miss the world’s two largest cocoa-producing countries due to pricing issues, Reuters reported.
Both Ghana Cocoa Board, COCOBOD, and Ivory Coast’s Coffee and Cocoa Council, CCC, have cited multinational chocolate companies resisting measures that aim to improve farmers’ income as the reason for their boycott.
According to the Head of Public Affairs for Cocobod, Fiifi Boafo, “The major chocolate brands have resisted and tried to find means to circumvent payment of the LID”.
Therefore, “the Chief Executive [Joseph Boahen Aidoo] is not attending the World Cocoa Foundation (WCF) meeting in Belgium and none of the executives at Cocobod will be there,” he affirmed.
Boafo accused the multinational chocolate companies of waging a silent war against a farmers’ premium, the Living Income Differential, as a direct rejection will give them bad publicity.
Adding his voice, the Director General of Ivory Coast’s Coffee and Cocoa Council (CCC), Yves Brahima Kone, also said he will not be in attending this or any other industry meetings.
He further stated that sustainability programmes launched since 2008 and aimed at tackling issues such as child labour have also benefited companies more than farmers.
Two premiums paid on Ghana and Ivory Coast cocoa beans to help alleviate farmer poverty have in recent years suffered massive discounts by chocolate companies, eroding the intended purpose.
The origin differential, an additional premium paid for the quality and reliability of cocoa beans and the Living Income Differential is a fixed amount of $400 agreed on for every tonne of cocoa sold by Ivory Coast and Ghana.
In July both regulators said they would no longer sell cocoa with a negative origin differential, fixing it at zero for Ivory Coast and at +20 pounds sterling ($22) per tonne for Ghana.
COCOBOD and CCC explained that some of the world’s major chocolate makers and cocoa traders are pushing for origin differentials as low as negative 200 pounds sterling per tonne.
“We are considering new ways to address this issue with the industry, including banning access to our cocoa farms for their sustainability programs,” The Director General of CCC said.
The World Cocoa Foundation Partnership meeting will be held from October 26-27 at The Hotel in Brussels, Belgium.
According to a statement made by Dr. Cassiel Ato Forson, ranking member of the finance committee, this is due to what they view to be the widely acknowledged incompetence and egregious mismanagement of the Ghanaian economy.
“The Syndicated loan was signed on 3rd October 2022, for the first time in 30-years. The Syndicated Loan is typically signed before October so that the draw down is timed to the start of the season. However, this government has added late signing of syndicated loans to its plethora of failures.
“Parliament approved up to $1.3 billion syndicated loan. However, COCOBOD could only get $1.13bn. This is purely due to the lack of confidence in the Ghanaian economy resulting from the generally agreed incompetence and gross mismanagement of the
Ghanaian economy.
“With huge and unprecedented debt overhang at COCOBOD, will the syndicated loan go into purchase of cocoa and related operations? Or will LBCs suffer the same faith of borrowing very expensive loans to buy cocoa from farmers, only for COCOBOD
not to pay them, as we have seen since 2017?” the statement said.
The Ghana Cocoa Board (COCOBOD) has signed a USD1.13 billion Receivables-Backed Trade Finance Facility (Syndicated Loan) on Monday October 3.
COCOBOD received $1.13 billion instead of the $1.3 billion as approved by Parliament.
The Chief Executive of COCOBOD, Joseph Boahen Aidoo, said during the signing ceremony that despite the challenges facing the cocoa sector, brought on by the global financial difficulties, the sector has once again shown leadership.
He assured the lenders of the effective and efficient use of the funds.
The Minister for Finance, Ken Ofori-Atta, also said the signing puts the nation’s finances in the right landing zone and gives impetus for optimism in the Ghanaian economy.
The significant portion of debt accumulation—roughly GH12.30 billion as of September 2020—comes from short-term cocoa loans, which make up GH8.49 billion or 69.02 percent of all debts.
Mr. Aidoo stated at the University of Professional Studies’ Public Lecture & Media Launch for the 2022 National Cocoa Day celebration that the considerable impact COVID-19 had on the cocoa trade caused a large decline in cocoa demand, which ultimately had the effect of lowering profits.
“Unfortunately, the ramifications of COVID-19 continue to cause more economic meltdown; thereby leading to plummeting demand for our cocoa. This has adversely affected the global cocoa trade, as projected revenue dropped abysmally and led to great financial shocks on Ghana’s cocoa regulator,” the CEO said.
Mr. Aidoo assured that management has decided to significantly cut debt levels in light of the fact that precipitating causes were wholly beyond COCOBOD’s control.
“In view of the fact that the precipitating factors were absolutely beyond our control, the Board and Management have resolved to reduce debt levels drastically.
“Consequently, in the short- to medium-term, stringent internal reforms have been advanced to control expenditures and cut costs while efforts are underway to finance existing debts,” he said.
The pricey short-term cocoa payments are anticipated to be refinanced by using relatively affordable long-term debt.
To prevent debt from building up, COCOBOD is instituting tighter financial controls by making savings to pay-off all of the debts shown on its books.
Other debts accumulated include the 10-year BoG loan that has a balance of approximately GH¢1.39billion and is being serviced in accordance with the repayment schedule established with the Bank of Ghana.
The moratorium on principal repayment terminated in January 2022, although COCOBOD anticipates paying off the debt in full by November 2023.
Cocoa Farmers Welfare
The Chief Executive noted that the Cote d’Ivoire-Ghana Cocoa Initiative’s much-lauded ‘Living Income Differential’ farmer-income development programme remains the most effective way to control cocoa prices and protect farmers from price volatility.
Accordingly, in the 2020/21 crop year COCOBOD increased the producer price per tonne of cocoa by 29 percent to as high as GH¢10,560.
“Making the cocoa industry more vibrant requires that our farmers are properly remunerated. It is in this regard that in the 2020/21 crop year government through COCOBOD increased the producer price per tonne of cocoa from GH¢8,240 to as high as GH¢10,560 – representing a 29 percent increase amid the ravages imposed by the COVID-19 pandemic on businesses globally,” the CEO said.
“In addition, there is a build-up in our concept of boosting domestic value addition and consumption of cocoa in an effort to reduce gluts of our produce on the world market to secure good prices,” he added.
Cocoa Day Celebration
The Board’s 75th Anniversary celebration, which will be held on the theme COCOBOD @ 75: Sustaining Our Environment, Wealth and Health with a series of activities from September 28 to October 1 in 2022 at the Suhum Presbyterian Senior High School Park, Suhum in the Eastern Region, has been timed to coincide with this year’s Cocoa Day celebration.
The annual Cocoa Day celebration is held to honour the contributions of our dedicated cocoa farmers, raise public knowledge of the nutritional and health benefits of cocoa, and inspire people to incorporate cocoa consumption into their daily life.
In addition to other measures, the yearly celebration that was started in 2005 aims to gradually increase Ghana’s per capita cocoa consumption – even if we still have a long way to go before we catch up with consumers in Europe, America and other affluent nations.
