Ghana’s financial situation COCOBOD is in critical condition and requires immediate surgery to resurrect the once vivacious being.

JoyNews is gaining knowledge. COCOBOD lost over 600 million dollars, or 150 thousand metric tonnes, in the previous harvest season owing to cocoa bean smuggling to neighbouring Burkina Faso and Togo, which made them exporters of cocoa they did not produce.

According to Bryan Acheampong, Minister of Food and Agriculture, the situation has left several cocoa storage facilities vacant.

“I reported last time that because of pricing, we started smuggling on our eastern and western borders. Even our northern borders, we suffered cocoa smuggling – Burkina Faso does not produce any cocoa at all, not even one grain yet Burkina Faso was exporting cocoa.

“Togo does not produce cocoa, Togo is now exporting cocoa from the eastern corridor, all the way from the north to the south.”

“During the rainy season, we had a drop of 85% of cocoa expected from the communities,” he continued. This is cocoa in which we have made significant investments.”

To combat smuggling, President Akufo-Addo set a new producer price over the weekend, the highest in the sub-region.

The president said at a meeting in Tepa, Ashanti Region, that the new producer price per bag of cocoa will be GH1,308.

He added that, until recently, international cocoa prices had remained extremely low, exacerbated by COVID-19.

Despite this, COCOBOD and the government have made the difficult choice to raise the producer price of cocoa.

“Cocoa prices have increased from GH¢7,600 per tonne in 2016, to GH¢12,800 per tonne in 2022, a significant increase of 68%. This has had an adverse impact on COCOBOD’s financial performance,” he said.

Recognising that the sustainability of the entire cocoa industry is dependent on a well-paid producer who is willing to invest in the business only with the certainty that the government will pay the appropriate price, the President stated that the government has increased the producer price in order to keep its promise to cocoa farmers.

President Akufo-Addo stated that the government has “increased cocoa prices from GH12,800 per tonne to GH20,943 per tonne, or GH1,308 per bag.”

“That price is seventy-five per cent (70.5%) of the Gross FoB price, which equates to $1,821 per tonne.”

According to the President, this is the highest price paid to cocoa growers in West Africa in 50 years.

With expected consistent prices over the $2,600 mark, the government will continue to reward our farmers with fair payments in the coming years. Indeed, brighter times are on the way.”

However, some cocoa producers are dissatisfied with the increased price.

According to Oboadie Nana Boateng Bonsu, President of the Concerned Farmers Association, farmer demand extends beyond money.

“The interventions, welfare, and other benefits that cocoa farmers are expected to receive are not being provided; we have a very poor network… The 1,330, which I believe is peanut, will accomplish nothing and will not deter cocoa traffickers from smuggling their cocoa.”

In addition, former President John Mahama condemned the rise as grossly inadequate in a statement.

He went on to say that it is a swindle of industrious cocoa producers.

Mr. Mahama said that, with the international market price of cocoa hitting a 46-year high of $3,600, the government should have paid cocoa farmers a more equal portion of the international FOB price.