Business News of Saturday, 8 July 2017
The CEO of COCOBOD Joseph Boahen Aidoo is predicting a difficult year for cocoa farmers in 2018.
He is projecting further drops in world price of the commodity. This he said will have adverse effects on the cocoa industry in particular and the economy as a whole.
Speaking at a media briefing in Kumasi after an interaction with cocoa farmers, the COCOBOD boss said the farmers must brace up for some tough decisions in the coming year.
“Next year we are going to enter into a very difficult year for the cocoa industry and also for the Ghanaian economy.
“We have to sell our cocoa at a lower price but then we have to decide whether we reduce the producer price, or let it stay there or increase, the price,” he stated.
The cocoa industry has been the mainstay of Ghana’s economy contributing to employment and other economic growth indicators.
It remains the most important export agricultural commodity (60% of agric. exports by 2015), a study has shown.
But the world price of the product continue to fall hitting a four year low due to excess supply.
Ivory Coast and Ghana are the world’s largest producer of cocoa accounting for over two-thirds of global supply.
Joy News’ correspondent Mohammed Nurudeen who was present at the meeting with the cocoa farmers said the meeting was to engage the farmers ahead of what would be a difficult year.
COCOBOD has already sold the stock for cocoa due to a forward sale policy the country adopted.
It is not clear yet what decisions the government will take to minimize the crisis in the industry.