Full text:RESPONSE TO MINORITY PRESS RELEASE IN RESPECT OF COCOBOD’S STRATEGIC POLICY SHIFT

The Ghana Cocoa Board (COCOBOD) has taken note of the press release issued by theMinority in Parliament on 21st August 2024, which contains several falsehoods,inaccuracies, and misrepresentations regarding the current state of the cocoa sectorand COCOBOD’s decision to wean itself of syndicated external borrowing to create morevalue for farmers.

A Complete Lie about the Paradigm Shift
The assertion by the Minority Caucus that the International Banks have rejected theGhana Cocoa Board’s request and that COCOBOD was ‘chased away’ from the market isfalse. This is so because syndicated banks submitted term sheets in response toCOCOBOD’s earlier Request for Proposals (RFP) for consideration.
Indeed, notwithstanding our intentions to wean off syndicated transactions, we stillhave committed contracts that need to be fulfilled through the syndicated process.These transactions have necessitated a discussion with financial institutions, andnothing in this process indicates, to us, a lack of confidence in COCOBOD’screditworthiness from these financial institutions.

Source of Funding for Cocoa Purchases
For the avoidance of doubt, the proposed decision to explore non-syndicated funding ispart of a broader strategy to diversify our sources of funding, making the Board moreself-financing and sustainable in the medium to long term, deriving more value forfarmers and retaining more value within the Ghanaian economy.

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Profitability in the 2022/2023 Crop Season
The Minority’s claim that the Board has made continuous losses is highly uninformed,and to say that COCOBOD made a loss of GHS4.2 billion in 2023 is false. In fact,COCOBOD’s 2023 accounts audited by Ernst & Young (EY) show a profit of GHS2.3billion during the 2022/2023 Crop Season, marking a significant turnaround from theprevious year’s performance. This financial success is a demonstration of theeffectiveness of the strategic initiatives undertaken by COCOBOD, including cost-cuttingmeasures, improved operational efficiency, and targeted investments in key areas of thecocoa sector.

Financial Performance and Sustainability
The Minority’s claim that COCOBOD’s decision to source funding domestically is a‘face-saving’ measure to hide its financial difficulties is categorically untrue.
As a matter of fact, whereas world market prices from 2017 to 2022 were record low(down 30 percent), producer prices were sustained to safeguard and sustain theindustry. The Minority cannot deny that the same period of financial challenges haswitnessed massive investments in key innovations, interventions, and productivityenhancement programmes including digitization of cocoa farmer households and farmsinto a comprehensive cocoa farmer data base, national cocoa traceability system,pruning of cocoa farms, hand pollination, the introduction and use of motorizedpruner-slasher machines, and rehabilitation of cocoa swollen shoot virus diseased(CSSVD) farms, a fundamental debilitating condition for which the NDC governmentunder former President John Mahama failed to achieve.
Historic Cocoa Production Volumes
The assertion by the Minority about consistent reduction in production under thecurrent management of COCOBOD is false. It is important to note that Ghana recordedits highest-ever cocoa production volume of 1.045 million metric tonnes during the2020/2021 crop season. This historic achievement was a direct result of effectivemanagement practices and targeted interventions by the Board, including improvedagronomic practices, enhanced farmer support, and strategic investments in the cocoasector.
While recent production levels have faced structural challenges, including adverseweather conditions (i.e., last year’s devastating El Nino force majeure) and the impactof the CSSVD, it must be reiterated that COCOBOD has implemented significantinterventions and mitigation measures.
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The Minority is fully aware that the future of Ghana’s cocoa has been secured with thesuccessful rehabilitation of 74,813 farms spanning 67,385.43 hectares, owned by56,105 farmers. These farms now thrive with hybrid, disease-tolerant cocoa varietiesthat have started bearing fruits, and the volume of cocoa from these farms will continueto increase in the years ahead. Out of the 74,813 farms rehabilitated and now atvarious stages of growth, 44,480 farms covering 40,150.40 hectares, belonging to28,510 farmers, are yielding as of August 2024 and will soon be handed back to theirowners.
Because of the positive measures and programmes currently being infused into thesector, cocoa farms in the transition belt that were converted into cashew cultivationwhen the Minority were in power with former President John Mahama are being turnedback to cocoa under the present government.
Commitment to the Cocoa Sector
Contrary to the Minority’s claims, the NPP government remains fully committed to thecocoa sector. The government has invested heavily in the sector, including theconstruction of roads in cocoa-growing areas, the provision of subsidized fertilizers andpesticides to farmers, and the implementation of the cocoa rehabilitation programme.
The claim that the Government has “destroyed” the cocoa sector is false, and fails torecognize the complexities of the global cocoa industry and the proactive steps beingtaken by COCOBOD and the Government to ensure the long-term sustainability ofGhana’s cocoa industry.
Conclusion
COCOBOD urges the public to disregard the Minority’s press release, which seeks topoliticize a strategic and forward-thinking policy decision. The Board remains focused onits mandate to sustain and grow the cocoa industry, ensuring that it continues tocontribute meaningfully to Ghana’s economy and the livelihoods of cocoa farmers acrossthe country. COCOBOD invites all stakeholders, including members of the Minority, toengage in constructive dialogue and collaboration to support the continued growth anddevelopment of Ghana’s cocoa sector.
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SIGNED:
CHIEF EXECUTIVE
For more information, please contact the Public Affairs Department, Ghana Cocoa Board
Office Direct Line: (0302) 66-17-66
E-mail: public_affairs@