Boahen Aidoo attributes GH¢2 billion loss to decline in global cocoa prices

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Boahen Aidoo attributes GH¢2 billion loss to decline in global cocoa prices

Joseph Boahen Aidoo, the Chief Executive of the Ghana Cocoa Board (), has attributed the organization's GH¢2 billion loss in 2021 to the significant decline in the international market price of cocoa.

Speaking before the (PAC) in , Mr Aidoo highlighted the challenges posed by the sharp drop of over 30% in cocoa prices on the global market in recent years. He emphasized that this decline, coupled with increased production, contributed to the substantial loss incurred by .

Mr Aidoo assured the committee that measures are being implemented to recover from these losses and return to profitability. He emphasized that COCOBOD is on the path of a turnaround, with plans underway to address the challenges posed by declining cocoa prices and mitigate further losses.

He explained, “COCOBOD's financial situation is dictated by the international market 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%. So when prices collapsed at the time when we had increased yield, that is the direct cost and inventory go up whereas the revenue generated goes down. That is what explains the huge deficit for the particular year.”

Despite the record production levels achieved, Mr Aidoo emphasized that the unfavourable international market prices significantly impacted COCOBOD's revenue generation.

The acknowledgement of these challenges underscores COCOBOD's commitment to addressing the adverse effects of global market dynamics and implementing strategies to ensure the sustainability of Ghana's cocoa industry.

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