COCOBOD CEO attributes GH¢2b loss in 2021 to price decline on international market
Mr Joseph Boahen Aidoo, the Chief Executive, Ghana Cocoa Board (COCOBOD), says the GH¢2 billion loss to the Board in 2021 was because of the decline in the international market price of cocoa.
The price of cocoa on the global market had experienced a significant drop of over 30 per cent in recent years, which contributed to the substantial loss incurred.
Appearing before Parliament’s Public Accounts Committee (PAC) hearing on Wednesday, Mr Aidoo attributed the challenges to factors like smuggling and illegal mining (galamsey).
He indicated that plans were underway to address the challenges posed by the declining cocoa prices with the implementation of strategies to mitigate further losses.
“Mr Chairman, we are on the path of a turnaround. COCOBOD’s financial situation is dictated by the international market price, that’s the world cocoa price, and we all know that from 2017 to the date in question, the price of cocoa in the world market has collapsed by 30 per cent. And in 2020 that is also when we had our highest production.”
“So when prices collapsed at the time when we had increased yield, the direct cost and inventory go up whereas the revenue generated goes down,” he said.
“…That is what explains the huge deficit for the particular year. Essentially yes we had record production, the prices at the international market did not favour us.”
Mr Murtala Mohammed, a Member of PAC, however called for Mr Boahen Aidoo’s resignation over the decline in cocoa production.
The National Democratic Congress Member of Parliament for Tamale Central further criticised Mr Aidoo for his alleged inability to address the decline in cocoa production and falling short of the projected targets.
“Mr Chairman, failure to resolve the issues should prompt his resignation,” Mr Mohammed said.
The PAC began its public hearing on Monday, January 29, 2024 to consider a report of the Auditor-General on the Public Accounts of the Ministries, Departments and Agencies (MDAs) for the year ended December 31, 2022.
It would also evaluate a report of the Auditor-General on the Public Accounts of Ghana – Public, Boards, Corporations and other statutory institutions for the period.
PAC is expected to bring its proceedings to an end on Friday, February 23, 2024.
Source: GNA