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In a recent statement, Joseph Boahen Aidoo, the Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), has highlighted the current bullish trend in the cocoa market, indicating positive prospects for Ghana’s local market.
Mr Boahen Aidoo emphasized that cocoa prices are performing well on the international market, suggesting an imminent improvement in Ghana’s local market conditions. He pointed out that between 2017 and 2020, the cocoa sector in Ghana faced challenges due to a 30 percent collapse in world market prices. Despite increased production in 2020, international prices remained suboptimal, adversely affecting the local market.
The International Monetary Fund (IMF) recently underscored the financial difficulties faced by COCOBOD, attributing them to factors such as the absence of a systematic mechanism for setting producer purchase price (PPP), substantial quasi-fiscal activities, and high administrative costs. Consequently, COCOBOD’s debt accumulated over the years necessitated restructuring to manage expenses effectively.
Speaking before the Public Accounts Committee (PAC) of Parliament on Tuesday, February 20, Aidoo outlined the efforts made by COCOBOD to navigate these challenges. He acknowledged the correlation between the organization’s financial health and international cocoa prices, citing the impact of price fluctuations on revenue and inventory.
Responding to inquiries about future strategies in the face of potential further declines in world market prices, Aidoo highlighted ongoing measures to streamline operations and reduce costs. However, he expressed optimism about the current market conditions, noting a bullish trend in cocoa prices. Aidoo projected sustained favorable conditions for the next three years, indicating a promising outlook for Ghana’s cocoa industry.
