“COCOBOD, the Ministry of Finance and government are working together to find a solution to this issue as quickly as possible,” he stated.
Dr. Randy Abbey also disclosed that buyers on the international market are increasingly turning away from Ghana’s cocoa due to higher prices compared to beans from other producing countries.
He said the price differential has significantly influenced purchasing decisions, with some buyers opting for cheaper alternatives in other markets.
“The buyers now find our beans as too expensive, and therefore they have shifted to other markets where they can get the beans far cheaper, because these are business decisions,” Mr Abbey explained.
According to him, the situation has affected the marketing of a portion of Ghana’s cocoa crop under the current financing arrangement. COCOBOD has so far sold more than 530,000 metric tonnes of cocoa, but close to 50,000 metric tonnes remain unsold.
We have sold over 530,000 tonnes of the crop. We have another under 50,000 that we are yet to find buyers for, and that is when the buyers started shifting,” he said.
Mr Abbey noted that the unsold cocoa could be linked to payment delays affecting some farmers, as beans that have not been sold are more likely to be among those for which payments are outstanding.
He assured that COCOBOD is actively engaging stakeholders to address the pricing challenge and secure buyers for the remaining stock, while working to minimise the impact on farmers and the wider cocoa sector.
Meanwhile, Mr Abbey disclosed that COCOBOD is exploring a new funding model for cocoa purchases, with a strong focus on promoting value addition rather than continuing the heavy reliance on the export of raw cocoa beans.
“We are looking at a model that does not tie hands with respect to the collateralisation of the raw bean, because we want a funding model that also facilitates or supports value addition,” he said.
Mr Abbey noted that discussions on the new funding approach are ongoing and assured that full details would be made public once a final decision is taken.
“The full details will be made known, but obviously, this is on top of the agenda,” he added.
