The Member of Parliament of Bortianor-Ngleshie Amanfro Constituency Hon. Sylvester Mathew Tetteh has addressed claims made by the minority about cocoa production and financial losses. Hon. Tetteh aimed to refute accusations and highlight the current state of the cocoa industry under the government’s stewardship.
Hon. Tetteh began by expressing his respect for Hon. Ato, a member of the minority, but criticized his recent political statements as mere propaganda. According to Hon. Tetteh, Ato’s criticisms are motivated by a political campaign rather than factual accuracy.
“It’s unfortunate that he’s just authored a piece of paper for political expedience. He’s in a campaigning mood.”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
Hon. Tetteh specifically contested the minority’s claim that the government has been running at a loss in cocoa production for the past eight years. Hon. Tetteh countered that the figures presented by the minority were misleading and not supported by factual evidence.
“The statement put out there by the minority is false. The figures they put there are false.”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
Hon. Tetteh highlighted COCOBOD’s profitability as evidence against the minority’s claims. Tetteh cited COCOBOD’s audited account for 2023, which reported a profit of approximately $2.3 billion, contradicting the narrative of financial losses.
Hon. Tetteh further explained that the government had historically paid cocoa farmers above the world market price, which led to losses but was done to support farmers. Hon. Tetteh noted that last year’s price adjustment was a response to a significant increase in world market prices.
“Government had kept the price…you are going to incur some losses…just last year…we had to increase because the world market price has shut up.”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
Production Trends and Historical Context
Hon. Tetteh rejected the minority’s assertion of a steady decline in cocoa production, asserting that the highest yield in Ghanaian history was achieved in the 2020-2021 season with 1,045,000 metric tons. Hon Tetteh criticized the minority for failing to acknowledge this peak production figure and for focusing solely on figures from 2016 without considering the intervening years.
“The highest record was in 2020. Why are they not reporting that?”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
Hon. Tetteh argued that a balanced view should include both the highs and lows of cocoa production over time to provide a fair assessment of the government’s performance.
Challenges and Government Interventions
Hon. Tetteh also addressed the challenges facing the cocoa industry, including the impact of illegal mining (galamsey) and the Cocoa Swollen Shoot Virus Disease (CSSVD). Hon. Tetteh pointed out that significant portions of cocoa farms had to be rehabilitated, which would temporarily decrease production but was necessary for long-term sustainability.
“Over 67 hectares of farms had to go under rehabilitation…cutting down cocoa trees and rehabilitating all these farms.”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
Hon. Tetteh argued that such interventions, though leading to short-term declines in production, were critical for future gains and should be recognized. Hon. Tetteh’s statement aims to correct what he perceived as misleading information from the minority about the state of Ghana’s cocoa industry. Hon. Tetteh presented counter-evidence regarding COCOBOD’s financial performance and production figures and highlighted the government’s efforts to address industry challenges.
Hon. Tetteh called for a more nuanced and comprehensive understanding of the cocoa sector’s recent history.
“The records are available, and the interventions we put in place over the period should be acknowledged.”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
Hon. Tetteh’s rebuttal is a defense of the government’s policies and achievements in the cocoa sector, emphasizing the complexity of industry dynamics and the need for accurate reporting.
Hon. Tetteh’s report highlighted various aspects of the cocoa sector, emphasizing discrepancies in forecasts and the implications of local financial strategies.
Tetteh raised concerns about the accuracy of cocoa yield forecasts. He questioned the reported figures, particularly a claim of a decline from “967” to “400,000,” suggesting that this data might be misleading. He argues:
“The report they are putting out, that we inherited 967,000, and we are now at 400,000, is not accurate.”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
Impact of CSSVD and Farm Rehabilitation
The report discussed the challenges posed by the Cocoa Swollen Shoot Virus Disease (CSSVD) and the government’s efforts in rehabilitating cocoa farms. Hon. Tetteh acknowledged that while the government is making strides in tackling CSSVD and rehabilitating “67 hectares of farms,” these measures might not yield immediate results.
“It is the same government that is fighting the CSSVD virus that we are dealing with today. The same government is putting in a lot of measures that will not get the returns today.”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
This statement reflects a recognition of the government’s ongoing efforts but also highlights the time required for these interventions to produce tangible results.
Financial Sector and Local Syndication
Hon. Tetteh also emphasized the financial strategies related to funding cocoa production. He suggested that the local banking sector, which has recently improved in profitability and health, should be better utilized for syndication.
“If you can have several Ghanaian banks to put together a facility for you, to get, let’s say, 1,500,000,000, you are looking for Hallelujah.”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
Hon. Tetteh emphasized that leveraging local banks for syndication could reduce the dependency on foreign exchange and its associated risks. He argued it would be financially advantageous due to the high costs associated with foreign currency exchange.
Hon. Tetteh highlighted the financial complexities involved in purchasing cocoa. Hon. Tetteh noted that while cocoa sales generate foreign currency, payments to farmers are made in local currency, which involves exchange rate considerations:
“You may earn dollars as it were but of course, you have to pay farmers in cedis.”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
Hon. Tetteh emphasized that managing these exchange rate differentials is crucial and suggested that local syndication could mitigate some of these financial pressures.
“If you can get a syndication locally, are we threatened by not getting money to buy our cocoa?”
Hon. Sylvester Mathew Tetteh the Member of Parliament of Bortianor-Ngleshie Amanfro Constituency
By advocating for local financial solutions, Tetteh underscored the importance of aligning financial practices with the economic realities of the cocoa sector.
Hon. Tetteh sought to provide a comprehensive overview of the current challenges and opportunities within Ghana’s cocoa sector.
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