The newly established Chamber of Cocoa Marketers has called on President John Dramani Mahama to give swift assent to the Ghana Cocoa Board Bill, arguing that the new legislation could provide a fresh framework for addressing longstanding challenges in the cocoa industry.
Acting President of the Chamber, Samuel Adimado, said the cocoa sector could not afford delays in implementing reforms contained in the Bill, stressing the urgency of putting the new legal framework into effect.
Speaking to the media on the sidelines of the launch of the Chamber of Cocoa Marketers, Mr Adimado said the legislation offered an opportunity to introduce new approaches to strengthening Ghana’s cocoa value chain.
“With the briefing that we have been given, time is of essence. This is not politics. Time is of essence,” he said.
“As an agriculturist, I wouldn’t recommend the President to wait in signing it. As an agriculturist, I know what it is,” he added.
The Chamber brings together key players across the cocoa industry, including Licensed Buying Companies (LBCs), processors, financial institutions, insurers, transport operators and other businesses within the value chain.
It is expected to provide a platform for industry stakeholders to engage government, the Ghana Cocoa Board (COCOBOD) and other relevant institutions on policies and challenges affecting the sector.
Industry welcomes protection for cocoa farms
Mr Adimado welcomed provisions in the Ghana Cocoa Board Bill aimed at protecting established cocoa farms, describing the move as important given the substantial investment required to develop cocoa planting materials.
He said cocoa seedlings produced by the Cocoa Research Institute of Ghana represented a significant public investment because they were distributed to farmers rather than sold commercially.
“Those of you who visit Cocoa Research Institute and you understand what they do there, you agree with me that it is a heavy investment,” he said.
He explained that although the planting materials were provided to farmers as a public good, considerable resources were required for research and breeding.
He therefore called for stronger safeguards to prevent the unnecessary destruction of established cocoa farms.
According to him, where cocoa farms must be destroyed for legitimate reasons, the process should require appropriate authorisation and compensation where applicable.
Call for support for cocoa processing
The Chamber also called for incentives to support businesses involved in cocoa value addition.
Mr Adimado said companies engaged in processing and other value-added activities faced considerable operational challenges and required an enabling environment to remain commercially viable.
“It’s a business and therefore, there should be incentives to ensure that if you are into value addition in Ghana, then you should survive as a business,” he said.
He said promoting local value addition was important to strengthening the cocoa industry and ensuring that more economic benefits remained within Ghana.
The Chamber further wants industry players to participate actively in developing the guidelines and principles that will govern implementation of the new legislation.
Mr Adimado said the organisation would adopt a collaborative rather than confrontational approach in its engagements with government and other stakeholders.
“We should listen to all opinions so that it can be incorporated into the guiding principles,” he said.
He added that the Chamber’s priority was to help create an environment in which businesses within the cocoa sector could expand, invest and remain sustainable.
New pricing framework
The Ghana Cocoa Board Bill also introduces changes to cocoa pricing, including a provision guaranteeing farmers at least 70 per cent of the gross free-on-board (FOB) value.
The new framework would also allow producer prices to be adjusted in response to relevant market indicators.
According to the Chamber, the reforms could provide a stronger foundation for improving incentives within the cocoa sector while ensuring that farmers and other value-chain participants benefit from developments in the international cocoa market.
Mr Adimado said the Chamber was prepared to work with government, COCOBOD and other stakeholders to ensure that the legislation translated into practical improvements across the cocoa value chain.
