RE: COCOBOD CEO LIED OVER COCOA FORWARD SALES

Date: 22nd November 2023

We make reference to a press statement issued by the Minority in Parliament on the above-mentioned subject, which relates to the forward sales of some of our cocoa beans for the 2023/24 Cocoa Season.

We have realized that certain aspects of COCOBOD’s sales strategies may have been misunderstood, leading to the erroneous conclusions drawn in the statement issued by the Minority in Parliament.

The fact is that COCOBOD employs a diversified approach to cocoa sales, utilizing forward, spot, and prepayment strategies based on market dynamics, funding, and collateral requirements.

The use of forward sales is a deliberate strategy aimed at price risk mitigation and stock management.

Contrary to the impression conveyed, 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. Forward sales serve the dual purpose of securing syndicated loans and strategically managing cocoa stocks.

At the time of determining the producer price for the 2023/24 Season, a substantial portion of the cocoa had been sold based on the reasons indicated above. The statement by the Chief Executive is accurate and cannot be described as a lie.  

We want to assure all stakeholders that if the final average achieved price 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 favour of our hardworking farmers.

We still remain steadfast in our commitment to ensuring a transparent and fair cocoa production and trading environment.

Our doors are always open for inquiries and clarifications concerning this matter.

ISSUED BY:
PUBLIC AFFAIRS DEPARTMENT

For more information, please contact the Public Affairs Department, Ghana Cocoa Board Office Direct Line: (0302) 66-17-66 E-mail: [email protected]