COCOBOD CEO must apologise to Mahama over lies — Minority

It would be recalled that, shortly after the announcement of the farm-gate price of cocoa for the 2023–24 cocoa season, former President Mahama criticised the NPP government for shortchanging cocoa farmers by pegging the farm-gate price at a paltry GH¢1,308 despite a 46-year record-high surge in the world market price.

The MP for Asunafo South and Ranking Member for Food and Agriculture said Mahama's comments were grounded in the fact that the hard-working cocoa farmers deserve far more of the international market price than they were given by the insensitive Akufo-Addo/Bawumia government, particularly given the unbearable cost of living and hardships they are currently reeling under.

He said in a so-called open letter to Mahama dated September 12, 2023, the CEO of COCOBOD, Joseph Boahen Aidoo, raised issues with Mahama, questioned his understanding of how the producer price of cocoa is determined, and claimed that the former President erroneously used $3,600 as the world market price to calculate the producer price.

He said in the statement that Boahen Aidoo claimed, consistent with practice, that Ghana’s cocoa beans are "mostly sold forward" and that "the 2023/24 crop was sold between October 2022 and March 2023 at international prices, ranging between $2,200 tonne and $2,400 per ton"

The incompetent and dishonest COCOBOD CEO went on to say that "the international price of cocoa then began to increase in April 2023, when a greater percentage of the 2023/24 crop had already been sold.”

The MP said it has now emerged that the CEO of COCOBOD told deliberate falsehoods in his desperate attempt to justify the rip-off that the Akufo-Addo/Bawumia government has meted out to our hard-working cocoa farmers.

According to documents submitted to Parliament by COCOBOD as part of processes for the approval of the syndicated loan for cocoa purchases for the 2023–24 crop season, it was disclosed that only 36.2% of our cocoa for this season was sold forward and used as collateral to secure the $800 million syndicated loan.

He stated that a joint memorandum to Parliament by the Minister for Food and Agriculture and the Minister of Finance on the approval of the terms of the $800 million syndicated facility partly reads, "The facility does not add to Ghana's debt stock. The loan is backed by cocoa sales contracts, and the quantity of cocoa collateralized for its repayment is about 36.20% of the anticipated product."

For the avoidance of doubt, 36.2% of the projected cocoa output for the 2023/24 season translates to a paltry 307,700 tons. This volume of cocoa cannot, by any stretch of imagination, constitute a "greater percentage" of the projected annual production volume (i.e 850,000 tons) as claimed by the CEO of COCOBOD in his deceitful response to President Mahama.

He said the incompetent and dishonest CEO of COCOBOD lied to the good people of Ghana when he claimed that a "greater percentage" of Ghana’s cocoa for the 2023–24 season was sold forward at a price of $2,600.

COCOBOD further disclosed to Parliament that the remainder of 63.8% of our 2023/24 cocoa output, which translates to 542,300 tons would be sold on the market at spot prices, which have been ranging between $3,600 and $4,000. This is contained in paragraph 4.2 of the Joint Memorandum. If COCOBOD succeeds in selling the remainder at the minimum spot price of $3,600 per ton as a worst-case scenario, COCOBOD would have shortchanged our hard-working cocoa farmers to the tune of $542,300,000 (GH¢6.5 billion).

As a matter of fact, further information submitted to Parliament indicates that COCOBOD has already sold part of the remaining 63.8% of our cocoa output for the 2023–24 season at spot prices ranging between $3,500 and $3,770 per ton from October to mid-November 2023.

Clearly, Mahama was spot on when he said that the insensitive Akufo-Addo/Bawumia government is shortchanging cocoa farmers whose toil and sacrifices continue to sustain the country’s economy.

The incompetent and dishonest Boahen Aidoo in his bid to deceive the hard-working farmers, threw truth and integrity to the dogs and sought to attack the credibility of President Mahama for exposing this grand heist.

The minority stated for the record that Boahen Aidoo has lied to cocoa farmers and the entire nation. He had no basis whatsoever to impugn an ill motive into what was a statement of fact by the respected former President. He therefore owes President Mahama, hardworking cocoa farmers, and the entire nation an unqualified apology.

In the coming days, the Minority in indicated that it shall in conjunction with the NDC Communications Bureau, embark on a series of engagements with cocoa farmers across the country on this subject, adding that the hard-working farmers deserve to know the whole truth about this gross injustice that has been meted out to them by the corrupt and insensitive Akufo-Addo/Bawumia/NPP government.