'Paying farmers at current prices pushes COCOBOD into debt' - Fiifi Boafo

Ghana’s cocoa sector is facing a deepening financial crisis, and the current struggles of the Ghana Cocoa Board (COCOBOD) to pay farmers on time result from a chain of policy reversals, internal power struggles, and costly misjudgments, according to Fiifi Boafo, a former Public Affairs Officer at COCOBOD.

Boafo made these remarks in an interview on Adom FM with Omanhene Kwabena Asante, host of Dwaso Nsem.

He argues that the situation did not develop overnight but stems from decisions that have gradually weakened the financial stability of the country’s most critical agricultural institution.

At the centre of the crisis, he explains, are three major issues; the politicisation of cocoa forward sales, leadership conflicts within COCOBOD and its subsidiary, and failure to anticipate global cocoa price trends.

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For decades, COCOBOD maintained a forward sales system in which about 70 percent of Ghana’s cocoa was sold in advance, while the remaining portion was held to benefit from possible market rallies through spot sales.

According to Boafo, this approach helped stabilise revenue, protected farmers when global prices dropped, and ensured timely payments.

However, he notes, the policy became heavily politicised. While in opposition, the National Democratic Congress (NDC) criticised the forward sales model.

After assuming power, the government significantly reduced forward sales, selling only about 30 percent of the projected 2025/26 crop while keeping the remainder in anticipation of a price rally.

"That expected rally never materialised. Instead, global cocoa prices declined, leaving COCOBOD with large volumes of unsold cocoa. The Board is now forced to sell at prices far below projections, creating a dangerous financial gap," he said.

Boafo also warned that paying farmers the current farmgate price under these conditions could push COCOBOD into severe deficits and potentially threaten its financial survival.

Beyond market decisions, Boafo points to internal leadership tensions as another major contributor to the crisis.

He alleges an ongoing conflict between the Chief Executive of COCOBOD and the Managing Director of the Cocoa Marketing Company (CMC), a key COCOBOD subsidiary responsible for marketing Ghana’s cocoa internationally.

Historically, the CMC Managing Director was appointed from technical ranks within COCOBOD and worked under the authority of the Board and Chief Executive.

However, Boafo says the current arrangement — where the CMC Managing Director was appointed directly by the President — has created competing lines of authority, breeding tension rather than cooperation.

According to him, the fallout from this conflict has been significant.

"It has disrupted the work of the Sales and Pricing Committee, delayed crucial decisions, and weakened internal coordination at a time when quick, technically sound decisions were most needed," Fiifi Boafo alleged.

Boafo further argues that political influence and internal disputes sidelined technical expertise.

"As a result, cocoa was not sold when global prices were favourable, and management delayed critical sales decisions. Today, cocoa is being sold below the price already promised to farmers, creating a financial trap for the Board."

“The reality is simple as Buying cocoa at the current farmgate price under current market conditions pushes COCOBOD deeper into debt. This is why farmers are experiencing payment delays,” Boafo stressed.

He maintains that the crisis is driven not by a shortage of cocoa production but by leadership and policy failures.

He warns that the continued inability to resolve these challenges risks deepening hardship for cocoa farmers across the country.

Looking ahead, Boafo is calling for urgent government intervention. He says the immediate priority should be resolving the leadership impasse between COCOBOD and the Cocoa Marketing Company.

He also advocates adopting a more balanced and technically driven sales strategy to restore stability to the sector.

In addition, he believes the government must step in financially to help COCOBOD manage the price gap currently preventing timely payments to farmers.

“If decisive action is not taken quickly, the consequences for farmers, the cocoa industry, and the broader economy could be severe,” Boafo cautioned.