Skip to main content

Cocoa farmers petition COCOBOD over pricing, other sector challenges

 


Some cocoa farmers in Ghana have lodged a formal complaint with COCOBOD, calling for swift action to address longstanding issues including deforestation, child labour, unsafe pesticide use, and, crucially, the payment of their living allowance.

The farmers’ complaint seeks to hold COCOBOD accountable by testing a grievance mechanism that the regulator set up as a condition for securing a $600 million loan from the African Development Bank in 2019.

The farmers, 30 in number have raised concerns, pointing out that, despite COCOBOD’s regulatory authority, the cocoa sector has struggled with these issues for over a decade.

The farmers argue that these persistent challenges undermine the welfare of cocoa farmers and their families, claiming that COCOBOD has not effectively monitored or managed the impact on the community.

Phidelia Gameli, one of the farmers, emphasized the need for COCOBOD to prioritize farmer welfare. “Improving the welfare of cocoa farmers should be at the forefront of COCOBOD’s responsibilities,” Gameli told Citi Business News.

This collective action is being supported by the University of Ghana School of Law, Civic Response, a non-profit organization, and the Chicago-based Corporate Accountability Lab. Together, they aim to bring greater accountability to COCOBOD and improve conditions in Ghana’s cocoa industry.

Best online courses

“Despite efforts to improve environmental sustainability and social well-being within COCOBOD projects, major issues persist. Deforestation, an inadequately paced shift to agroforestry, the excessive use of harmful and toxic pesticides and other chemicals, and hazardous child labour are mainstays of the cocoa industry in Ghana, many of which persist at least in part because of opaque supply chains and the low price cocoa companies pay for cocoa. All of this must change”, the complaint sighted by Citi Business News read in parts.

Despite concerted efforts by COCOBOD and other governmental agencies to address the growing trend of cocoa smuggling, little progress has been made in curbing the illicit trade.

Ghana lost an alarming 120,000 metric tons of cocoa beans to smuggling between 2022 and 2023.

This significant loss poses a major threat to Ghana’s cocoa industry, a vital sector of the national economy.

The smuggling of cocoa beans, a long-standing issue in Ghana, appears to have worsened in recent years, driven largely by the allure of favourable prices in neighbouring countries.

In 2018, the Ghana Cocoa Board (COCOBOD) established an Environmental and Social Management System (ESMS) that includes a grievance and redress mechanism.

The ESMS seeks to provide a structured framework for identifying and managing potential environmental, social, health and safety risks, impacts and opportunities of all operations in the cocoa sector.”

The ESMS and the grievance and redress mechanism apply to “COCOBOD, its subsidiaries and divisions, productivity-enhancing programmes, projects and activities, contractors, service providers, consultants and parties associated with any of the operations of the Board.

Comments

Popular posts from this blog

Fitch Solutions retains 2025 growth rate projection at 4.2%

 Fitch Solutions has reaffirmed its projection that Ghana’s economy will expand by 4.2% in 2025. This estimate slightly exceeds the International Monetary Fund’s forecast of 4% and the World Bank’s projection of 3.9%. The UK-based research firm attributes its outlook to historically high gold prices, which are expected to cushion the Ghanaian economy against a global slowdown triggered by rising tariffs. Higher gold prices are anticipated to strengthen government revenue, enhance foreign exchange earnings, and help sustain currency stability. The report also highlights that Ghana is relatively less vulnerable to increasing trade restrictions from the United States, given that its primary exports—gold and crude oil—are not directly affected by the tariffs introduced by President Trump’s administration. Moreover, the US constitutes only about 4% to 5% of Ghana’s total exports. In contrast, Ghana’s trade relations are more heavily oriented toward China and European countries, particul...

BoG injects $20m into FX market to support 11 BDCs

  The Bank of Ghana (BoG) has injected $20 million into the foreign exchange market in the latest round of its forward FX auction targeted at Bulk Oil Distribution Companies (BDCs). The intervention, which benefited eleven BDCs, is part of the central bank’s broader strategy to stabilise the cedi and ensure price stability in the petroleum downstream sector. Held on Tuesday, April 29, the auction was priced at a locked exchange rate of GHS 14.28 to the US dollar, with bid offers ranging from GHS 13.85 to GHS 15.55. This move reflects the BoG’s continued effort to deepen forex liquidity and safeguard the domestic fuel supply chain against volatility in global energy markets. By directly supplying FX to BDCs, the central bank seeks to ease pressure on the interbank market, guarantee the uninterrupted flow of petroleum products, and mitigate the pass-through effects of exchange rate fluctuations on fuel prices. The $20 million disbursement forms part of a $120 million programme for th...

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

  As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...