Randy Abbey, Board Members 'To Blame' for Cocoa Price Cut – Hon. Michael Aidoo

The Member of Parliament for Oforikrom and Deputy Ranking Member on the Youth and Sports Committee, Hon. Michael Kwasi Aidoo, has attributed the current difficulties confronting Ghana’s cocoa sector to what he describes as self-inflicted policy and marketing decisions.

Speaking on Joy FM’s current affairs programme, Newsfile, Hon. Aidoo argued that recent government pronouncements regarding producer price adjustments significantly affected the market positioning of the Ghana Cocoa Board (COCOBOD).

“The problem we are facing now is a self-inflicted problem,” he stated, referencing earlier comments by government officials suggesting a possible increase in cocoa producer prices in March. According to him, such public signals created market expectations and disrupted the timing and strategy of cocoa sales.

Hon. Aidoo further criticised COCOBOD’s handling of forward sales for the 2024/2025 crop season. He contended that the Board failed to take advantage of favourable international cocoa prices at the time.

“Instead of selling the 2024/2025 cocoa all on forward when the new prices were very high, he did not,” he said, referring to COCOBOD Chief Executive Officer, Randy Abbey.

Forward sales have traditionally been used by COCOBOD as a risk management instrument to lock in prices ahead of delivery, thereby insulating the country from commodity price volatility. Hon. Aidoo stressed that cocoa is a highly volatile commodity, with prices capable of sharp fluctuations within short periods, making timing critical in sales strategy.

“Cocoa is volatile and prices can fluctuate at any time. This is the first time this kind of price fall has happened in many years,” he noted.

The Oforikrom legislator rejected claims that Ghana’s cocoa is overpriced or uncompetitive on the global market. He insisted that the current challenges stem from a downturn in international prices rather than resistance from buyers.

“The problem is not selling. It is not that buyers are claiming our prices are expensive. It is the market that has crushed,” he said.

Hon. Aidoo further alleged that cocoa stocks were withheld in anticipation of further price increases, a strategy he believes ultimately backfired when the global market experienced a significant decline.

“They were hoarding the cocoa with expectations that prices would rise, and then it flopped, not small, but drastically. It is a wrong calculation that has been done,” he concluded.