Measures taken to reform cocoa industry laudable — ICU, GAWU

THE Industrial and Commercial Workers’ Union (ICU-Ghana) and the General Agricultural Workers’ Union (GAWU) of TUC (Ghana), prominent and indispensable stakeholders in the cocoa industry in Ghana, have hailed the measures outlined by the Minister of Finance, Dr Cassiel Ato Forson, to reform the operations of Ghana Cocoa Board (COCOBOD) and, by extension, the cocoa industry as a whole.

They said the deteriorating operations of COCOBOD and the Produce Buying Company in recent times had raised significant concerns among stakeholders about the sustainability of the economy, considering the fact that cocoa remains the mainstay of Ghana’s economy (i.e., “Cocoa is Ghana and Ghana is Cocoa”).

“The measures taken by the government to reform the cocoa industry are not only laudable but also economically prudent, especially the new financing model that will enable COCOBOD to allocate 50 per cent of the total cocoa produced in Ghana to CPC and other local processing companies for local processing. This initiative will promote value addition and job creation, thereby benefiting the large number of unemployed youth in the country. 

Legacy 

“Additionally, the offloading of COCOBOD’s legacy debt to the Ministry of Finance and the Bank of Ghana, as well as the automatic adjustment of producer prices to align with movements in world market prices, exchange rates, and other key variables, will have a monumental and positive impact on COCOBOD’s operations and the national economy at large,” they said in a joint statement today (Tuesday).

It was signed by the General Secretary of ICU, Morgan Ayawime and the General Secretary of GAWU of TUC, Andrews Addoquaye Tagoe.

The measures, the unions said, resonated strongly with the position and representations of ICU-Ghana and GAWU of TUC (Ghana) to the Government regarding the financial and operational challenges facing COCOBOD and PBC, which they had consistently advocated since last year.

Undoubtedly, they said the interventions would give COCOBOD and PBC a new lease of life and the impetus needed to deliver on their mandate to stabilise and transform the cocoa industry in Ghana.

Intervention 

While commending the government for the timely intervention to save COCOBOD, PBC, and ultimately the cocoa industry in the country, the unions said they opposed the decision to reduce the salaries of senior and management staff of COCOBOD, as that might adversely affect staff morale and negatively impact productivity.

“The decision to reduce the salaries of  and management staff of COCOBOD, some of whom are unionised, by 10 and 20 per cent is totally unacceptable, given that Management of COCOBOD took this decision without recourse to the rules of engagement required by the Labour Law and our Collective Agreement with the relevant social partners, namely ICU-Ghana and GAWU of TUC (Ghana). In view of this, the unions are demanding a reversal of the decision and engagement with the members on the way forward.

“Moving forward, management of COCOBOD, its units, and other stakeholders in the cocoa industry must play their respective roles effectively to sustain the growth and development of the cocoa industry,” it said

The unions said there was a need to create structures and systems that would insulate COCOBOD from external pressures and partisan politics if we are fully committed to ensuring the survival and sustainability of the cocoa industry.

ICU-Ghana and GAWU of TUC (Ghana) are confident that the skilled workforce of COCOBOD, its divisions, and subsidiaries will redouble their efforts to help the Board achieve its set objectives, the statement emphasised.

Reforms 

Last Thursday, Dr Cassiel Ato Forson outlined the cocoa sector reforms for financial viability and long-term sustainability.

To bring relief to unpaid cocoa farmers, he said Cabinet had directed COCOBOD to commence immediate payment of all affected cocoa farmers.

A new COCOBOD Bill will be presented to Parliament to implement an automatic adjustment of producer price to align with movement in the world market price, exchange rate, and other key variables and guarantee a minimum of 70 per cent of the gross FOB price to be paid to cocoa farmers.

He mentioned a new Financing Model for Cocoa Purchases and related Operations with associated benefits for increased processing and that the current financing model was invented as a necessity after the syndicated loan failed, after 32 years of successful implementation, and it has proven not to be sustainable. 

Cabinet has directed that, with immediate effect, the remainder of the beans for the 2025/26 crop season should be allocated for domestic processing.

Cabinet has also directed that beginning from the 2026/27 crop season, a minimum of 50 per cent of cocoa beans should be processed locally. 

Pursuant to that, the state-owned Cocoa Processing Company (CPC) will be revived as a matter of priority to become the leading processor of the cocoa beans.