The Ghana Cocoa Board (COCOBOD) has reassured cocoa farmers that prompt payments for their produce will remain a priority, even though the board has decided not to secure funds from the international market this season.
Dr. Ransford Anertey Abbey, the new CEO of COCOBOD, made the assurance during his first engagement with cocoa farmers since his appointment.
“We will prioritise payments for cocoa over other financial commitments,” Dr. Abbey said, emphasizing COCOBOD’s dedication to transparency with farmers. His statement comes amidst concerns over funding, as this is the first time the board has not accessed the traditional syndicated loans.
Acknowledging the various challenges facing the cocoa industry, Dr. Abbey pointed to declining production, aging farms, and the issue of smuggling. He revealed that COCOBOD is stepping up efforts to rehabilitate aging and diseased farms to boost productivity. “We need to fully understand what is going on and work with farmers to intensify rehabilitation efforts,” he said.
In addition to farm rehabilitation, COCOBOD is exploring large-scale cocoa farming as a means to supplement the contributions of smallholder farmers. Drawing comparisons with countries like Côte d’Ivoire and nations in South America, Dr. Abbey highlighted the potential for large-scale farming to boost national production. “We need to seriously look at how we can incentivise people to collaborate with us and get into large-scale cocoa farming,” he added.
The smuggling of cocoa, which has plagued the industry due to price disparities with neighbouring countries, is also being addressed through collaboration with the National Security apparatus. “We’ve had a series of meetings, and the National Security team has prioritised this issue,” Dr. Abbey stated, noting that a strategy is being developed to combat the illegal trade.
Despite these challenges, the cocoa industry has seen record-breaking prices, particularly after adverse weather conditions in 2024 decimated West African crops. Cocoa futures hit US$11,720 per tonne in April 2024, and current prices remain high, hovering around US$11,100 per tonne. This surge in prices is largely driven by global demand and tight supplies.
Dr. Abbey’s leadership marks a renewed focus on ensuring the sustainability of the cocoa sector while navigating the financial and operational hurdles that have emerged in recent years.
