The NDC Majority Caucus has attributed a significant part of Ghana Cocoa Board’s (COCOBOD) financial crisis to an unprecedented collapse in global cocoa prices, which fell nearly 76 percent between January 2025 and February 2026—the steepest decline in three decades.
This follows the ongoing crisis in the cocoa sector, which has left COCOBOD grappling with massive revenue shortfalls and operational challenges.
Addressing the media on Thursday, February 19, Isaac Adongo Chairman of the Finance Committee, said, “The claim that the absence of forward sales caused the current crisis is therefore incorrect. Both forward and spot prices fell below US$6,000 at the trough, implying that even full forward coverage could not have sustained the earlier projected FOB level.”
The caucus explained that although COCOBOD had forward-sold approximately 530,000 tonnes of cocoa—representing 82 percent of the projected 650,000-tonne 2025/26 crop—the sector still suffered severe revenue losses.
Over-committed contracts from the 2023/24 season compounded the problem, resulting in costly rollovers and a total revenue gap estimated at nearly US$927 million.
The NDC Majority Caucus stressed that these combined factors—external market shocks and legacy contractual obligations—necessitated urgent reforms to stabilize the cocoa sector, protect farmers’ incomes, and restore the Board’s financial health.
Source: Starrfm.com.gh
