COCOBOD Scams Cocoa Farmers: Pays US$ 2,500 Despite US$10,000 Windfall on World Market Prices

In a rather dark turn of events, the Akufo-Addo administration is paying cocoa farmers approximately US$ 2,540 per metric tonnes for their cocoa beans, even though prices on the international market are currently peaking at an all-time high of  US$ 10,0000 per ton.

On April 5, 2024, the state-owned cocoa marketing company, COCOBOD issued a statement creating the impression that it had been benevolent for increasing producer prices of cocoa from about US$ 1,609 (GHC 20, 982) per metric tonne to GHC 33,120 (approximately US$ 2,542).

However, this was the biggest ripoff of farmers in the history of the industry, because this is barely 25% of the world market prices, instead of the 50% of international prices that they often earn on their cocoa beans sold on the international market through COCOBOD.

Usually, previous governments through COCOBOD, keep about 50% of the international value of cocoa beans exported out of Ghana. The remaining 50% are transferred to farmers for their troubles.

But, this time, a corruption ridden and close-fisted administration of President Akufo-Addo has kept for itself 75% of the cocoa proceeds.

This development has forced the Minority in Parliament to raise red flags, citing the significant disparity.

The press statement issued recently by the Minority, and signed by Eric Opoku (MP) Ranking Member, Parliamentary Select Committee on Food, Agric & Cocoa Affairs,  demanded an immediate adjustment to the producer prices being paid more than 800,000 cocoa farming households across the country.

With the world market price of cocoa reaching an all-time high of around US$10,000 per ton, equivalent to GH¢130,000, COCOBOD’s announced producer price of GH¢33,120 per ton fell short, translating to US$ 2,540 per metric tonne.

The Minority described the refusal of the Akufo-Addo administration to pay farmers their deserved farmgate prices as “gross injustice”.

The Minority reminded the government of its promise (by President Akufo-Addo) to ensure that Ghanaian cocoa farmers receive a farmgate price constituting a minimum of 70% of the international market price.

The current disparity of only 25.47% to farmers has been described as a betrayal of this promise and a blatant disregard for the welfare of the farmers.

Expressing disappointment in the perceived insensitivity and corruption of the government, the Minority emphasized the need for a fair increment in the farmgate prices to duly compensate and alleviate the losses experienced by cocoa farmers.

The Minority highlighted the decline in national cocoa output and stressed how it was unacceptable for the government to exploit farmers to such levels.

Consequently, the Minority has announced its intention to summon the Minister of Agriculture before Parliament to address the concerns raised and pledged to engage with cocoa farmers and industry stakeholders to chart a way forward for the cocoa industry in Ghana.

Meanwhile, Whatsup News can report from its investigations on cocoa trading platforms; from cocoa farmers and from executives at COCOBOD that this year, Ghana would hardly be able to produce up to 500,000 metric tonnes of cocoa.

This is partly due to the destruction of cocoa farms by illegal miners, many of whom are linked to government officials. The other reason is due to gross incompetence of state agencies to provide cocoa farmers effective support through fertilisers and other extension services.

Source: Whatsupnewsghana