COCOBOD extends credit period to CPC by 20 days

Ghana Cocoa Board (Cocobod), the Ghanaian government-controlled institution that fixes the buying price for cocoa in Ghana, has extended a credit line to the Cocoa Processing Company (CPC) which processes only the choicest premium Ghana cocoa beans without any blending from 30 to 50 days.

As at December 2016, the CPC owed Cocobod US$50 million for cocoa beans supplied prompting the board to halt supply to the processing company. The move forced CPC to buy at the open market at a higher cost.

But intervention by the Agriculture Ministry enabled an agreement to be reached between both parties to supply 2000 metric tonnes of cocoa beans annually to the processing company.

The CPC then introduced measures to significantly reduce losses and structure systems at the place in line with best global practices.

Meanwhile, the CPC has applied for a US$3million loan facility from the Trade Ministry to be accessed from the Ghana Exim Bank.

The confectionery manufacturer explained that though the money has been approved since 2017, management has since been frustratingly pursuing its release from the Ghana Exim Bank.

The delay means although CPC has a total capacity of 64,500 metric tonnes for its two factories, it is currently processing about 49,000 metric tonnes, constituting 76 percent of production capacity.

However the Head of Corporate Affairs at the Ghana Exim Bank, Richard Anane says CPC’s application is going through a due process such that when the processing is concluded, the manufacturing company will be duly informed. Ghana is the world’s second largest producer of cocoa.