The Ghana Cocoa Board (COCOBOD) has revealed that it has about 98,000 metric tonnes of cocoa to service under rollover contracts as discussions continue to resolve challenges arising from past delivery shortfalls.
The disclosure was made by the Chief Executive Officer of COCOBOD, Dr. Randy Abbey, during a media engagement.
“Roll over, we have about 98,000 to go, 98,000 tonnes to go. I indicated that COCOBOD, the Ministry of Finance, and the Government are in discussions to find a solution to these issues and that we will find the solutions and communicate that very soon,” he said.
Dr. Abbey explained that the rollover situation stems largely from COCOBOD’s inability to meet contract obligations in the 2023/2024 cocoa season.
According to him, the COCOBOD failed to deliver 333,767 metric tonnes of cocoa despite having already signed contracts at a price of $2,600 per tonne.
He noted that the decision continues to have far-reaching implications for the cocoa sector.
Dr. Randy Abbey also rejected claims that COCOBOD had defaulted on syndicated loan repayments, stressing that the defaults related strictly to cocoa delivery contracts.
“I have never ever said anywhere that COCOBOD defaulted in paying syndicated loans. What I have said is that COCOBOD defaulted in servicing contracts that it has signed. That COCOBOD signed contracts and failed to deliver 333,767 tonnes. That it sold at $2,600 a ton. That I have said repeatedly.
“I have said that repeatedly. But I have never ever said anywhere that they took syndicated loans and they defaulted in the payment of the syndicated loans. I have not said that anywhere. But what I have said consistently, and I am saying again, is that in 23/24, they failed to deliver 333,767 tonnes of cocoa that they have signed contracts and sold for $2,600.
“We are still reeling from that decision. It is a reason why when cocoa prices went high as 12,000, 11,000, and 10,000, the Ghanaian cocoa farmer and Cocoa Board could not benefit.
“Because we were using this high-priced cocoa to service $2,600 contracts. So apart from not even
benefiting, there was another catch. We were incurring debts,” he said.
