The Minority in Parliament has expressed concern over the continuous mismanagement of the cocoa sector and the short-changing of Ghanaian cocoa farmers by the ruling New Patriotic Party (NPP) government.
This concern is highlighted in a press statement by Hon. Eric Opoku, the Ranking Member on the Parliamentary Select Committee on Food, Agric & Cocoa Affairs and Member of Parliament for Asunafo South.
The recent increase in cocoa prices on the world market has been occasioned by the global shortage of cocoa owing to a significant decline in cocoa output in Ghana and Cote d’Ivoire, contributing approximately 70 percent of the total volume of cocoa produced globally.
“The NDC is deeply concerned about the sharp decline in Ghana’s cocoa production volumes under the Akufo-Addo/Bawumia NPP government. This situation is set to get even worse, as Ghana’s cocoa production for the 2023/2024 crop season is reported to be about 450,000mt; the lowest in the past two decades.”
Hon. Eric Opoku, Ranking Member on the Parliamentary Select Committee on Food, Agric & Cocoa Affairs and MP for Asunafo South.
Hon. Eric Opoku noted that the situation is fast-eroding the incomes and purchasing power of the already-impoverished cocoa farmers. The living conditions of Ghanaian cocoa farmers keep worsening by the day due to the sharp decline in cocoa output. This negative trend will persist if the farm-gate price of cocoa is not significantly increased, to compensate for the loss in income of farmers.
“It is instructive to note, that the average international market price of cocoa currently stands at Ten Thousand United States Dollars ($10,000) per ton (16 bags) of cocoa. This is equivalent to GHS130,000 per ton, at a conservative exchange rate of $1 to GHS13. This means that a bag of cocoa is currently being sold on the world market at about GHS8,125, while the Ghanaian farmer is being paid a paltry GHS1,308 by the insensitive and corrupt Akufo-Addo/Bawumia/NPP government.”
Hon. Eric Opoku, Ranking Member on the Parliamentary Select Committee on Food, Agric & Cocoa Affairs and MP for Asunafo South.
The Ranking Member on the Parliamentary Select Committee on Food, Agric & Cocoa Affairs demanded that the government immediately increase the farm-gate price of cocoa to reflect the recent unprecedented hike in the world market prices of cocoa.
The Hon. Eric Opoku highlighted that last year, Ghana lost about 150,000mt of cocoa valued at almost $400,000,000 to smuggling. This was occasioned by the fact that the hardworking cocoa farmers were not offered competitive prices by the government. The caucus stated, “The reoccurrence of this situation this year, will have dire consequences for the cocoa industry which is on the verge of collapse due to gross mismanagement and corruption.”
Hon. Eric Opoku further noted that it is sad for cocoa farmers to continue to be shortchanged, while COCOBOD’s administrative expenses which stood at less than GHS500 million in 2016, increased to GHS1.7 billion in 2020 and ballooned further to GHS2.5 billion in 2021.
“Only this week, we sighted an official document in which the Management of COCOBOD has approved the purchase of fifteen (15) iPad keyboards for its Board of Directors at a staggering cost of GHS4,500.00 per unit. This is the clearest evidence yet, that the management of COCOBOD has prioritized waste and the comfort of their offices at the expense of hard-working cocoa farmers. Also, it is symptomatic of the recklessness and mismanagement that have plagued COCOBOD for the past seven years which accounts for the cumulative losses of GHS13.62 billion, recorded by COCOBOD since 2017.”
Hon. Eric Opoku, Ranking Member on the Parliamentary Select Committee on Food, Agric & Cocoa Affairs and MP for Asunafo South.
Additionally, Hon. Eric Opoku called for urgent steps to be taken to save the alleged dying cocoa sector now. “This we believe will incentivize our farmers and discourage the smuggling of cocoa beans amid all the challenges bedeviling the industry,” the Minority stated.
The concerns raised by the Minority in Parliament about the mismanagement of the cocoa sector and the short-changing of Ghanaian cocoa farmers are part of a larger picture of economic and social challenges facing Ghana. Addressing these issues requires a comprehensive approach that includes economic reforms and anti-corruption measures to address the pressing needs of the country’s citizens.
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