The Chamber of Cocoa Marketers has called for stronger collaboration, improved financing, increased value addition and responsible governance as the Licensed Cocoa Buyers Association of Ghana (LICOBAG) following its transition into the Chamber of Cocoa Marketers.
The Acting President of the Chamber, Mr Samuel Adomado, said the transition would enhance the growth of Ghana’s cocoa sector and position the institution as a standards-driven and policy-influential body capable of contributing to reforms across the cocoa value chain.
Mr Adomado made the call at the launch of the Chamber of Cocoa Marketers in Accra yesterday. The event brought together licensed buying companies, cocoa industry stakeholders, financial institutions and other participants in the cocoa value chain.
He explained that the transition marked a significant milestone in the history of LICOBAG, which was established following the liberalisation of Ghana’s internal cocoa marketing sector in the early 1990s.
“Licensed buying companies recognised the need for a common platform to engage the industry regulator and address operational challenges, despite competing in the market,” he said.
According to Mr Adomado, the Association’s activities intensified during the 2003/2004 cocoa season following the “purple beans” problem, which disrupted cocoa procurement and threatened the operations of several licensed buying companies.
He added that “changes in cocoa financing, pricing, taxation and production, together with the enactment of a new Cocoa Bill, had altered the industry’s dynamics.”
The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Mr Randy Abbey, called for reforms to Ghana’s cocoa financing model to provide adequate liquidity for cocoa purchases while supporting domestic processing.
He explained that the existing financing arrangements, which required extensive collateral, made it difficult for local cocoa processors to expand and did not recognise contracts with local processing companies.
Mr Abbey said COCOBOD was introducing a new funding model to provide liquidity for cocoa purchases throughout the year and increase the participation of local processors.
He also announced a new financing mechanism expected to raise the largest domestic bond in Ghana in a single instance.
The mechanism, Mr Abbey said, was aimed at reducing payment delays to licensed buying companies, improving purchasing efficiency and reducing indebtedness to banks.
Mr Abbey also advocated a new cocoa pricing mechanism that would allow producer prices to respond to international cocoa prices and other market conditions.
He said such a system would enable farmers and other stakeholders to benefit from higher international prices while sharing the impact of market declines.
The CEO further noted that the legislation would protect cocoa farms from unauthorised destruction and environmentally harmful activities.
Mr Abbey urged the Chamber to promote domestic cocoa processing, digitalisation and traceability, as well as sustainability, climate protection and efforts to combat child labour.
The Chairperson, Dr Andani Alhassan, welcomed the formation of the Chamber and called for stronger partnerships among licensed buying companies, farmers, COCOBOD, financial institutions and international partners.
He said cocoa remained an important pillar of Ghana’s economic development and urged stakeholders to pursue ethical trade and sustainable growth.
BY HILDA NSAMI
Follow our WhatsApp Channel now!
