The Chief Executive Officer of Ghana Cocoa Board (COCOBOD), Dr.Ransford Abbey, has announced that about 120,000 tonnes of Cocoa beans will be rolled over in the 2025/2026 crop season to Service roll over debt inherited from the previous management.
In the 2023 /2024 season, COCOBOD signed a forward contract to sell Ghana’s 333,767 tons of cocoa at $2,600 per ton; however, it failed to supply the cocoa for its contracted deliveries, resulting in huge financial losses of $4000 per ton as the world cocoa price surged.
“As we speak, 210,000 tons of the 333,767 tons rollover debt has been serviced at $840 million — money that could have gone to improve farmers’ livelihoods. Unfortunately, since we can’t deliver all the contracted cocoa, we’re now rolling over about 120,000 tonnes to the 2025/2026 season. We have to be strategic about how to manage this situation moving forward,” the Acting CEO said during a meeting with various cocoa farmer groups in the Eastern Region.
The CEO of COCOBOD described the situation as worrying as it hinders farmers opportunity to get higher farmgate price for cocoa beans amid high world market value for the commodity.
“The most unfortunate part is that everyone in the value chain — LBCs, haulage companies, CMC, quality control, agrochemical suppliers — takes their margin, and after paying farmers around $3,000 per ton, COCOBOD is left with a deficit of about $4,000 per ton due to the old contract price. This means that for every ton of cocoa sold under these rollover contracts, COCOBOD has to find an extra $1,400 to top up.Looking at the current world market price of cocoa compared to what Ghanaian farmers receive is very worrying”
Dr. Ransford Abbey told the farmers that
COCOBOD is currently saddled with a huge debt of almost GHS 33 billion. In addition to that, it owes about GHS 21 billion to contractors. Out of this, contractors who have presented certificates for completed work are owed GHS 4.4 billion.
“One has to ask — is COCOBOD now the Ministry of Roads to be awarding road contracts worth GHS 21 billion?” The truth is that COCOBOD is heavily indebted, and as a result, we’ve had to put a hold on several projects, including cocoa road construction “
He said the focus now is to clear the huge debts to ensure financial stability for the COCOBOD.
Touching on other matters regarding productivity, he bemoaned that, “about 40% of Ghana’s cocoa farms are infested by Cocoa Swollen Shoot Virus Disease (CSSVD). Although $300 million was secured by the previous management to rehabilitate 156,000 hectares, only 40,000 hectares were rehabilitated. An additional $40 million was also allocated for irrigation, and ₵700 million drawn from COCOBOD’s coffers, but all wasted,” said Ransford Abbey, Acting CEO of COCOBOD
Before meeting the farmers, the acting CEO of COCOBOD paid a courtesy call on Okyenhene Osagyefuo Amoatia Ofori Panin at his palace to acknowledge him for hosting the Cocoa Research Institute of Ghana on his land for many decades.
Okyenhene expressed confidence in the Acting CEO to turn the situation around for Ghana’s cocoa sector.
He urged COCOBOD to provide deliberate help to create Millionaire Cocoa farmers, stating, “We should not be afraid to make Ghanaians rich”
Source : Ghana/Starrfm.com.gh/Obed Kojo Ansah
