Minority Accuses Govt of Shortchanging Cocoa Farmers with New Price
Some Members of Parliament accord the incumbent government is shortchanging farmers with the recently announced cocoa gate price.
In a press statement, the Minority in parliament noted “H.E John Mahama is right, newly-announced cocoa farm gate price is a rip-off.”
The group drew the conclusion after putting together their figures and factors.
“It is an indisputable fact that COCOBOD sells cocoa through both forward sales and spot sales. This fact was confirmed by the failed CEO of COCOBOD, Joseph Boahen Aidoo who has indicated in his so-called open letter to H.E John Dramani Mahama, that portions of the anticipated cocoa production volume for the 2023/2024 season were not sold as part of forward sales between October 2022 and March 2023. It is also an irrefutable fact, that the international spot price of cocoa currently stands at $3,800 and has averaged around $3,600 in the last couple of months, as accurately stated by H.E John Dramani Mahama.
“It is noteworthy, that the average international FOB price of $3,600 excludes the Living Income Differential (LID) of $400 per tonne that is paid by international buyers to Ghana for the direct benefit of the cocoa farmer. Also, the average international FOB price of $3,600 excludes a premium of $497 that Ghana got in June 2023 for every tonne of cocoa. The interbank (dollar to cedi) rate as at the time the 2023/2024 cocoa season was opened was GHS11.03 and is currently hovering around GHS11.05.”
The statement signed by the Minority Leader in Parliament, Cassiel Ato Forson furthered, “This means that for spot sales, the government is getting a gross FOB price of averagely GHS39,708 per tonne of cocoa, excluding the LID of $400 per tonne and premium of $497 per tonne. This brings the gross FOB price per bag of cocoa to approximately GHS2,482, excluding the LID of $400 per tonne and premium of $497 per tonne. When the LID of $400 per tonne and premium of $497 per tonne are factored into the pricing formula, the price per bag of cocoa comes to about GHS3,100.”
By these, Hon Forson noted that the GHc1,308 per bag increment by the government is “unfair and unconscionable”
On the issue of forward sales, Hon Cassiel stated that the Chief Executive Officer (CEO), Mr. Joseph Boahen Aidoo was only “hiding behind” forward sales to cover up his failed sales and marketing strategy.
“The quantity of cocoa sold through forward sales for various futures positions are carefully managed, leaving reasonable portions for possible spot sales when the market price rises. Hiding behind forward sales to recklessly dissipate and give away Ghana’s cocoa at cheap prices as the failed CEO of COCOBOD is claiming, is preposterous and unacceptable.
“Additionally, Ghana’s light crop beans form only a small portion of the total production volume of the country. In recent years, good rainfall and weather patterns have resulted in even smaller and negligible quantities of light crop and small beans.”
