Dr Cassiel Ato Forson, Ghana’s finance minister, has expressed concern that the cocoa sector, which was once the backbone of the country’s economy, is faltering as a result of years of mismanagement.
He stated that, despite record-high global market prices, the cocoa sector can no longer support the economy as it once did.
Dr. Forson disclosed that outstanding cocoa road contracts have reached GH¢21 billion (US$1.3 billion) by 2024, with just GH¢4.4 billion accounted for in COCOBOD’s financial accounts.
On Tuesday, March 11, 2025, he made these assertions when presenting the 2025 Budget at Parliament House in Accra.
“The sector faces declining output and financing challenges characterized by unsustainable debt, rollover contracts and quasi-fiscal expenditures including cocoa roads, a non-core function,” according to him.
“Mr Speaker, cocoa production has plummeted by approximately 50% in the last three years. COCOBOD was unable to achieve its contractual obligation to supply 330,000 tonnes of cocoa during the 2023/2024 crop season. “The new administration has rolled over this undersupply for future supply,” he said.
He further stated that the 2023/24 forward sales contracts, which were locked in at lower prices than current market rates, resulted in a revenue loss of $840 million for COCOBOD and further impoverished Ghanaian farmers.
“Mr Speaker, the rolled-over contracts will cause further losses of $495 million this year. This means that for every tonne of cocoa provided this year in accordance with the rolled-over contracts, COCOBOD and the Ghanaian farmer will lose $4,000.
“There are other hazards associated with market pricing differences and smuggling. The wide difference between market pricing and farmer payments encourages smuggling and threatens the industry’s long-term viability.”
COCOBOD has an outstanding debt of GH¢32 billion, with GH¢11.92 billion to be paid by 2025.
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