Perennial challenges in the release of seed funds by COCOBOD provide fertile grounds for the smuggling and diversion of cocoa beans to foreign countries.
According to Council Chairman of the Cocoa Abrabopa Association, Ismael Pomasi, the recurrent delay in the release of the funds from the Ghana Cocoa Board to licensed buying companies leads to delayed payment for farmers.
The challenge is collapsing the operations of indigenous licensed cocoa-buying companies and reducing supplies of demanded volumes of their customers.
The Ghana Cocoa Board is mandated to secure external funding for the cocoa season and distributes such funds to Licensed Buying Companies (LBCs).
These LBCs purchase cocoa beans from farmers at prices determined by international market pricing.
Despite the recently announced producer price of cocoa which the government described as historic, some farmers say they may be compelled to smuggle due to the non-availability of local buyers.
“Smuggling is a major concern, and it significantly impacts farmers who live close to the border. Instead of sending their beans here they could sell them across the border. Currently, farmers find themselves unsure of where to sell their dried beans,” the farmers said.
Council Chairman of Cocoa Abrabopa Association, Ismael Pomasi disclosed that the smuggling of cocoa to neighbouring countries like Togo and Ivory Coast, has led to the closure of its operations in the Oti and Volta cocoa regions.
Speaking at the 12th Annual General Meeting of the Cocoa Abrabopa Association in Kumasi, he appealed to the regulator and the government to take steps to tackle the challenges.
“Smuggling of cocoa to the neighbouring countries (Togo and Ivory Coast); leading to the closure of both our Oti and Volta Cocoa Regions. This, plus the delay in seed funds affect volume acquisitions by Cocoa Farmer Associations/Cooperatives like CAA in the supply of demanded volumes of their customers. This challenge must be addressed to prevent the collapse of the operations of LBC,” he said.
Farmers from cocoa-growing regions met to reflect on Cocoa Abrabopa Association’s stewardship for the year 2022.
Sustainability Manager, Wilfred Apiung, says despite the challenges, the Association is committed to improving the livelihoods and incomes of cocoa farmers through gender equity and sustainable cocoa production.
“We are committed to improving the income levels of farmers to bring them above the living income benchmark. We look at some cost components that can reduce their burden and support them,” he said.
Some farmers recounted that the sustainable farm training and support from Cocoa Abrabopa has been beneficial to their cocoa production.
Cocoa Abrabopa Association in 2022 began the Living Income Sustainability Initiative for Economic development of members.
Since the inception of the initiative, a total of 22 tricycles, 30 units of SOLO mist blowers, 4 mechanised boreholes with washroom facilities and an agrochemical inputs shop have been distributed.
Others include two snail farming start-up packages commissioned and handed over to beneficiary groups in Bogoso, Tarkwa Aboso, Bonsa and Amaen operational areas all in the Western South Cocoa Region of Ghana.
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