Stop Giving Excuses and Adjust Cocoa Prices- Minority Caucus Tells NDC Government
The Minority Caucus of parliament is demanding answers from the ruling NDC government on why current producer price of Cocoa has not been adjusted.
It has underscored the palpable delay as a stab in the back of cocoa farmers in Ghana and a sharp contrast to the NDC’s manifesto promise that “the NDC government will ensure regular price increments depending in line with the world market trends”.
The caucus has questioned the NDC that “were the promises by Hon. Eric Opoku, the current Minister for Food and Agriculture, Hon. Dr. Cassiel Ato Forson also the current Minister for Finance and other leading members of the NDC to pay cocoa farmers GHs 6,000 per bag, made in vain or they were mere propaganda just to win votes?”.
Addressing the media in Kumasi on Monday, Hon. Isaac Yaw Opoku, Offinso South MP and also raking Member of Parliament- Food and Agriculture and Cocoa Affairs Committee questioned “is government and COCOBOD telling cocoa farmers in particular and Ghanaians in general that between now and the 30th of September, when 2024/25 crop Season ends, there won’t be any price adjustment irrespective of what happens to the international and local market?…
Speaking at the press conference held in Kumasi, Hon Isaac Yaw Opoku, the ranking member on Food and Agric business, expressed worry about several letters issued by cited reasons why Cocobod cannot adjust the producer price.
He said,as at the current exchange rate, Ivorian farmers are now receiving the equivalent of GHC 3,635 per 64kg bag of cocoa, staggering GHC 535 more than Ghana, which they think will give more rooms for Cocoa smuggling to nearby countries like Togo,Cote d’ivoire and Burkina Faso.
Is the NDC also reneging on their campaign promise to pay the cocoa farmer 70% of the FOB price?”.
He described as untenable, reasons cited by COCOBOD in two separate releases as to why they are unable to adjust the producer price.
Below is a copy of their press statement;
MINORITY CAUCUS URGES GOVERNMENT TO STOP THE EXCUSES AND INCREASE THE PRODUCER PRICE OF COCOA NOW.
Ladies and Gentlemen of the press,
Good morning and welcome to this press conference of the Minority Caucus of the NPP.
We have called you here to express our concerns about the government’s failure to adjust the producer price of cocoa.
As you may be aware, on the 8th of April 2025, Ghana COCOBOD issued a letter signed by Dr. James Kofi Kutsoati, (Ag. Deputy Chief Executive, OPS) and addressed to the Executive Secretary of the Licensed Cocoa Buyers’ Association of Ghana (LICOBAG) titled “COCOA PRICE ADJUSTMENT FOR THE 2025/26 COCOA SEASON” and cited two reasons why they cannot adjust the producer price.
Just a day after, that is 9th April 2025, another release issued by the Public Affairs Department of the same COCOBOD titled “THE PUBLIC SHOULD DISREGARD ANY STATEMENT SUGGESTING A PRODUCER PRICE ANNOUNCEMENT” rather gave two different reasons as to why the producer price of cocoa cannot be increased.
Ladies and Gentlemen of the press, we are shocked and highly disappointed by the two releases, which both point all to one fact, that is, COCOBOD, and for that matter the NDC Government will not increase the producer price of cocoa for the 2025/26 season. “ONE PRODUCER PRICE, EXCUSES BEBREE”
This posture of Government raises a number of questions.
As you may be aware, we are still in the 2024/25 crop season.
The 2025/26 crop season has not turned up yet. It will begin from 1st of October 2025, which is about 6 months from now. Therefore:
1. Is Government and COCOBOD telling cocoa farmers in particular and Ghanaians in general that between now and the 30th of September, when 2024/25 crop season ends, there won’t be any price adjustment irrespective of what happens to the international and local market?
2. Ladies and Gentlemen, this is a stab in the back of cocoa farmers and in sharp contrast to the NDC’s manifesto promise (page 43) that “the NDC government will ensure regular price increments depending in line with the world market trends”. The question is what is the world market price today?
3. Is the NDC also reneging on their campaign promise to pay the cocoa farmer 70% of the FOB price?
4. Were the promises by Hon. Eric Opoku, the current Minister for Food and Agriculture, Hon. Dr. Cassiel Ato Forson also the current Minister for Finance and other leading members of the NDC to pay cocoa farmers GHC 6000/bag, made in vain or they were mere propaganda just to win votes?
Cocoa farmers believed in the promises made by the NDC and voted
therefore stop the numerous excuses and honour its promise and increase the producer price now.
Ladies and Gentlemen, all the reasons cited by COCOBOD in their two releases as to why they are unable to adjust the producer price are untenable.
OPERATIONAL CHALLENGES
Ladies and Gentlemen, what operational challenges are so compelling that COCOBOD cannot increase the producer price of cocoa? Ghanaians want to know.
ABSENCE OF PRODUCER PRICE REVIEW COMMITTEE
The producer price review committee is a standing committee which is already in place. The Board of Directors of COCOBOD has no role in the formation of the committee and therefore cannot be used as an excuse not to increase the producer price.
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FINANCIAL IMPLICATION
The government must not hide behind COCOBOD debt and deny farmers their legitimate share of the FOB for their toil.
Ladies and Gentlemen of the press, it is important to point out that COCOBOD has the economic size and the financial capacity to pay whatever debt it owes.
It may interest you to know that, today, the over 70,000 hectares of Cocoa Swollen Shoot Virus Diseased farms rehabilitated by the previous administration from the AfDB loan have started yielding, which is a positive sign for the industry.
As at February 2025, cocoa purchased and taken over by COCOBOD was more than 560,000 tonnes. This is close to $3.0 billion (GHS45.0 billion) based on the achieved average FOB price and cashflow in just 5 months within the 2024/25 crop year beginning from October 2024. Anybody talking about COCOBOD’s debt without situating it within the context of its economic and financial capability to pay, therefore, will be making a sad mistake.
It is worthy to note that the new financing model introduced by the immediate past NPP administration has further strengthened the financial capability of COCOBOD. For the first time in 32 years, COCOBOD did not go for the annual syndication loan to finance the 2024/25 crop. No borrowing at all!
As at January 2025, more than US$2 billion receipts have come through BoG. This is the biggest COCOBOD receipt ever to be brought into the country within 4 months (October 2024 to January 2025) without any borrowing or syndication loan and attendant cost (interest on facility, commitment fee, administration fee and legal fee).
Again, it is important to note that the payment of COCOBOD’s total debt is not going to happen in one year, that is, this year 2025. The payment structure has been spread over annual, medium term and long term. The 10-year loan inherited from the previous NDC Government, the Bui Dam loan, the Cocoa Bills and Bonds are part of the long-term debt; the AfDB loan and cocoa roads debt are medium; and operational cost, chemical and fertilizer cost, and CTORS are all annual.
COCOBOD’s capability to meet its annual financial obligation is not in doubt, given the present cocoa taken over and receipt inflows. Our hardworking cocoa farmers and Ghanaians must, therefore, be wide awake and reject any attempt by the NDC Government to blame its inability to increase the producer price of cocoa on COCOBOD’s debt.
Ladies and Gentlemen of the press, the recent price hike in Cote d’Ivoire has created a significant disparity that threatens to exacerbate cocoa smuggling across the border.
The Ivorian government’s decision to increase cocoa prices from 1,800 CFA to 2,200 CFA per Kilo, representing a substantial 22.24% rise, has widened the price gap between the two West African cocoa giants.
At the current exchange rate, Ivorian farmers are now receiving the equivalent of GHC3,635 per 64kg bag of cocoa, a staggering GHC535 more than Ghana. This stark difference presents an irresistible incentive for smugglers to divert Ghanaian cocoa across the border, potentially leading to a mass exodus of our prized light crop beans from the border regions, particularly Western South, Western North, and Brong Ahafo.
Another serious consequence of the unfortunate decision or indecision of COCOBOD not to pay competitive producer price is the tendency of farmers to sell their cocoa farms for illegal mining activities, especially in the face of surging gold prices.
It is imperative to note that previous administrations demonstrated the foresight and flexibility to adjust cocoa prices promptly when faced with significant disparities between Ghana and Cote d’Ivoire. This proactive approach helped maintain the integrity of our cocoa industry and protected our farmers’ interests. The current administration’s failure to act swiftly in the face of this growing crisis is both baffling and deeply concerning.
We call upon the government to take immediate and decisive action to address this pressing issue. The time for lamentations and blame game has passed; what we need now is a substantial increase in cocoa prices to match or exceed those offered in Cote d’Ivoire. This is not merely an economic decision but a matter of national security and the preservation of our agricultural heritage.
The government must act now to safeguard our cocoa industry, protect our farmers’ livelihoods, and maintain Ghana’s position in the industry. Failure to do so will result in irreparable damage to our economy and a betrayal of the hardworking farmers who form the backbone of our nation’s agricultural sector. The clock is ticking, and the eyes of the nation are watching. It is time for this administration to prove its commitment to Ghana’s cocoa industry and its farmers.
NO MORE EXCUSES. The government and COCOBOD must keep their promise and pay the cocoa farmer a minimum of GHC 6000/bag.
Source: Ghana/otecfmghana.com/Simon Opoku Afriyie
