In response to recent allegations of misinformation regarding cocoa forward sales, COCOBOD (Ghana Cocoa Board) has issued a statement refuting claims made by the Minority in Parliament.
The controversy revolves around the forward sales of cocoa beans for the upcoming 2023/24 Cocoa Season.
COCOBOD asserts that certain aspects of its sales strategies have been misconstrued, leading to “erroneous” conclusions.
“The board employs a diversified approach, utilizing forward, spot, and prepayment strategies based on market dynamics, funding, and collateral requirements. Forward sales, in particular, are described as a deliberate strategy aimed at price risk mitigation and stock management,” the statement read.
The controversy stems from the allocation of 338,600 metric tonnes of cocoa as a guarantee for a syndicated loan. COCOBOD clarifies that this allocation does not imply that the remaining quantity will be exclusively sold at spot prices. Forward sales, according to COCOBOD, serve the dual purpose of securing syndicated loans and strategically managing cocoa stocks.
Addressing concerns raised by the Minority in Parliament, COCOBOD emphasizes that, at the time of determining the producer price for the 2023/24 season, a substantial portion of cocoa had already been sold based on the aforementioned reasons. The board defends the accuracy of the CEO’s statement, asserting that it cannot be described as a lie.
Furthermore, COCOBOD reassures stakeholders that if the final average achieved price surpasses the US$2,600 used by the Producer Price Review Committee in setting the current producer price of cocoa, due consideration will be given to benefit hardworking farmers.
COCOBOD further encouraged stakeholders to seek clarifications and make inquiries, emphasizing that their doors are always open concerning this matter.