The Chief Executive Officer of the Ghana Cocoa Board, Randy Abbey, has disclosed that decisions made nearly a decade ago to maintain cocoa producer prices through borrowing are still affecting Ghana’s cocoa industry.
Thank you for reading this post, don't forget to subscribe!He made the remarks following a ceremony held to introduce three Ghanaian cocoa farmers who were recognised at the Cacao of Excellence Awards 2025 in Amsterdam on February 20.
Dr. Abbey explained that in 2017, when global cocoa prices dropped significantly, Côte d’Ivoire responded by cutting producer prices by about 40 percent. However, Ghana chose to maintain its producer prices by raising funds through the issuance of COCOBOD bills.
According to him, these bills were taken up by both local and international investors, but the cost of servicing them placed a heavy burden on the sector. He noted that for three consecutive years, cocoa producer prices remained unchanged, with farmers effectively absorbing the cost through interest payments.
The situation worsened in 2022 when COCOBOD, together with the government, could not meet its repayment obligations. This led to the inclusion of the cocoa bills in Ghana’s domestic debt restructuring programme, where investors experienced financial losses through imposed reductions.
Dr. Abbey revealed that the country is currently required to pay approximately GH¢2.6 billion annually as a result of the borrowing decision. He detailed that about GH¢300 million is paid in March, while an additional GH¢2.3 billion is due in August each year—funds that ultimately come from cocoa revenues.
He stressed that the experience highlights the long-term consequences of using borrowing to stabilise producer prices during periods of global market instability.
“These decisions were taken years ago, yet we are still managing their impact today,” he stated.
The Cacao of Excellence Programme, which organised the awards, is an international initiative led by the Alliance of Bioversity International and CIAT. It aims to identify and promote high-quality cocoa beans worldwide by evaluating them based on flavour and overall excellence.
The programme also celebrates the contributions of cocoa farmers, bringing together experts and industry players to recognise outstanding quality in cocoa production.