COCOBOD explains non-payment of bonus

Accra, July 24, GNA - The Ghana Cocoa Board on Monday said the Board had not paid bonuses to cocoa farmers for the 2004/2005 main crop season because of the reduction in the purchasing figures and Free on Board (FOB) price.

A statement issued by the Public Affairs Department of the Board explained that at the beginning of every cocoa season, the Producer Price Committee (PPRC) made up of stakeholders in the industry including farmers' representatives and the Licence Buying Companies, met to agree on the producer price to be paid as well as other fees or rates for other stakeholders.


It said the rates were agreed on the basis of market parameters, the major ones being the forecast average FOB price and the forecast output to be realized during the season and the average exchange rate.


"At the end of the season, if these forecast estimates result in increased earnings than expected, it is only then that bonuses are paid to farmers."

COCOBOd said the targeted volume for the 2004/05 season was 700,000 tonnes while the actual volume achieved was 585,974.57 tonnes, showing a shortfall of 114,025.43 tonnes. The forecast average FOB price of 1,440 dollars per tonne was the same as the actual average FOB price. COCOBOD in March 2001 paid bonus of 70.1 billion cedis to farmers. The amount paid in October 2002 was 41.5 billion cedis while 77.8 billion cedis was paid in February 2003. Bonus paid in October 2003 was 78.6 billion cedis while 160 billion cedis was paid in October 2004. The statement said in all these years, the actual FOB realised was higher than the budgeted FOB.


The statement said Government and COCOBOD recognised the significant contributions of the cocoa farmer to the economy and were committed to exploring every opportunity to improve their lives.