Monday, 26 February

COCOBOD: Our CEO didn't lie about cocoa forward sales

Business
Ghana Cocoa Board (COCOBOD)

The Ghana Coxoa Board (COCOBOD) has dismissed allegations by the Minority in Parliament, asserting that its CEO, Joseph Boahen Aidoo, did not lie about cocoa forward sales. 

The statement clarified that COCOBOD employs diverse strategies, including forward, spot, and prepayment approaches, based on market dynamics. 

Emphasising that forward sales aim at mitigating price risks and managing stocks, it refuted the notion that allocating 338,600 metric tonnes as a guarantee for a syndicated loan means the remainder is exclusively sold at spot prices. 

COCOBOD affirmed the accuracy of its CEO's statement, rejecting claims of misinformation.

“The use of forward sales is a deliberate strategy aimed at price risk mitigation and stock management,” it added.

The Board said: “Forward sales serve the dual purpose of securing syndicated loans and strategically managing cocoa stocks", insisting "the statement by the CEO is accurate and cannot be described as a lie.”

The Minority Group in Ghana's Parliament had called for an unqualified apology from Mr Aidoo for allegedly making false statements about the country’s 2023/24 cocoa forward sales. 

The controversy arose from Mr Aidoo's response to former President John Dramani Mahama's criticism of cocoa farm-gate pricing, where Mr Aidoo claimed a "greater percentage" of cocoa was sold forward for $2,600.

However, evidence presented by the Minority group contradicts this, revealing that only 36.2% was sold forward, prompting the demand for an apology and highlighting potential shortcomings in securing fair prices for cocoa farmers.

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