Cocobod has begun talks with some banks outside the country to help facilitate about US$1.3 billion needed to purchase cocoa beans in the upcoming 2019/2020 crop season.
Chief Executive Officer of COCOBOD, Joseph Boahen Aidoo earlier told the media, “Initially we are expecting $1.3 billion. We tread cautiously even though our production has gone above 900,000 metric tonnes, we [still] tread cautiously because of the fall in the price of cocoa.
This is because when the price of cocoa is falling you need larger volumes of cocoa to collateralize.”
Last year, Cocobod raised a similar amount which was used in purchasing some 900,000 metric tonnes of cocoa beans for the crop season.
Cocoa floor price
Ghana and Cote D’Ivoire, which account for 65% of global cocoa production, last month succeeded in getting an agreement with global processors and marketers for the floor price of cocoa beans to be pegged at $2,600 per tonne, after an intensive two-day stakeholder engagement in Accra.
Ghana and Cote d’Ivoire are co-operating to tackle common challenges in the production and marketing of cocoa, and to create a conducive platform for effective engagement with traders, processors, manufacturers, and retailers on all relevant issues of mutual interest, including farmers’ income.
There are fears that the sustenance of the new cocoa floor price could be tampered by low consumption rate of cocoa especially in Africa which accounts to just 4 percent of global consumption rates.
- Big Chocolate maker backs new cocoa pricing mechanism
- COCOBOD distributes coffee seedlings to farmers
- COCOBOD to construct $60m cocoa processing factory
- Cocoa prices soar as Ghana, Cote d’Ivoire threaten supply cut
- COCOBOD increases incentive package for cocoa rehabilitation
- BoG reveals how COCOBOD cash was used to set up Heritage Bank
- Bank of Ghana introduces GH¢100, GH¢200 notes and GH¢2 coin
- We’re planning to ban rice importation by 2022 – MoFA
- Government announces strategic investor for Komenda Sugar Factory
- Government, Wienco rescue rice farmers
- BoG directs banks to publish salaries of top personnel
- Ghana Buffer Stock Company to sustain drive for consumption of local rice
- GSE signs agreement with Singapore Cooperation to transform its operations
- ‘Year of Return’ stimulates Ghana’s economic growth
- German investor to build cocoa processing plant in Suhum Ghana
- Dr Bawumia cuts sod for 30km Sinohydro Cape Coast inner city roads
- Rice importers withdraw ads from media house over local rice campaign
- Ghana to end rice importation in next five years – AGRA
- Govt agrees to increase ports tariffs
- Three auto firms to unveil locally assembled cars in 2020
- Ghana Gas’ demand of gas from Jubilee, TEN fields low – Tullow
- Cedi depreciation declines following strong macro-economic fundamentals – Ofori-Atta
- 2020 revenue target set at GHC67.1bn
- Most fund management companies were operating illegally – Joe Jackson
- Ghana signs $2.3bn concession for SkyTrain Project, first station to open in nine months
- Go to CBG for validation and payment – SEC to customers of Gold Coast, others
- Ghana now imports flowers from SA – Osafo Maafo laments high importation rate
- Kwahu Afram Plains South to get a cassava processing factory
- 347 dead MFIs: Receiver increases capped payments to GHS20K
- Address issue of high interest rates – Akufo-Addo to BoG