We will evoke sanctions if you fail to comply - COCOBOD warns LBCs

Ghana Cocoa Board (COCOBOD) has released a press statement cautioning Licence Buying Companies who are involved in what they term as unethical practices in the internal marketing of cocoa treating to evoke sanctions on LBCs who are found violating their directive.

According to the press statement dated November 27, 2019, payment in any form of inducements to cocoa farmers at the point of sale is unethical and must stop. The warning follows an observation made by COCOBOD that some LBCs were running advertisements that solicit cocoa from producers for premium payments on the spot or at a later date.

The Ghana Cocoa Boards’ directive of 24th January disapproves the payment of any form of inducement to cocoa farmers at the point of sale. The statement added that, Premium payments can be made after the closing of the season to only cocoa farmers who registered and participated in certification/sustainability projects before the start of the cocoa season.

Read the full statement from Ghana Cocoa Board below:

PRESS STATEMENT

The Ghana Cocoa Board (COCOBOD) has noted with concern that some LBCs are engaged in unethical practices in the internal marketing of cocoa. These practices which involve the payment of spot premiums and other forms of inducements are offensive to the Regulations and Guidelines for the internal marketing of cocoa. We wish to reiterate our directive of 24th January 2019 that:

• Payment of any form of inducements to cocoa farmers at the point of sale is unethical and must stop forthwith

• LBC’s must refrain from any form of advertisement soliciting for cocoa from producers for premium payments on the spot or at a later date

• Premiums payments can be made after the closing of the season to only cocoa farmers who registered and participated in certification/sustainability projects before the start of the cocoa season

• No LBC shall purchase conventional cocoa and declare same as special unless with a written prior approval by COCOBOD and restricted to a specific location

We wish to inform all stakeholders that COCOBOD has begun consultations to reform the regulation for the production and marketing of certified/sustainable cocoa. The final decision on the operation of certified/traceable cocoa projects shall be communicated to all stakeholders in due course.

All LBCs are reminded that COCOBOD Management shall evoke the applicable sanctions on violations of the above directive.

DR. EMMANUEL OPOKU DEPUTY CHIEF EXECUTIVE (OPERATIONS) GHANA COCOA BOARD