Ghana Cocoa Board responds to Minority's allegations of misrepresentation in cocoa forward sales

The Ghana Cocoa Board (COCOBOD) has issued a statement in response to allegations by the Minority in Parliament that the Board's CEO misrepresented the facts about cocoa forward sales.

The Minority had claimed that COCOBOD had sold 338,600 metric tonnes of cocoa as a guarantee for a syndicated loan, and that this would leave the remaining cocoa to be sold at spot prices, which are typically lower than forward prices.

However, COCOBOD has denied this claim, stating that the use of forward sales is a deliberate strategy aimed at price risk mitigation and stock management. 

The Board also clarified that the allocation of 338,600 metric tonnes of cocoa as a guarantee for the syndicated loan does not imply that the remaining quantity will be or had been exclusively sold at spot prices.

COCOBOD further stated that a substantial portion of the cocoa had been sold forward at the time of determining the producer price for the 2023/24 Season, and that the statement by the CEO is accurate and cannot be described as a lie.

The Board also assured stakeholders that if the final average price achieved surpasses the US$2,600 used by the Producer Price Review Committee in arriving at the current producer price of cocoa, due consideration will be given and addressed in favor of farmers.

COCOBOD has called for transparency and fairness in the cocoa production and trading environment, and has invited anyone with questions or concerns to contact the Public Affairs Department.

Read the entire statement below;