Cocoa Chamber calls for stronger collaboration, reforms to boost sector

The Chamber of Cocoa Marketers has urged for enhanced collaboration, better access to financing, expanded local processing, and accountable leadership to propel Ghana’s cocoa industry forward following the conversion of the Licensed Cocoa Buyers Association of Ghana (LICOBAG) into the Chamber of Cocoa Marketers. Mr Samuel Adomado, the Chamber's Acting President, highlighted the transformation as a pivotal moment for the cocoa sector, positioning the organization as a standards-oriented and policy-influencing body with the potential to drive reforms across the value chain.

Speaking at the Chamber’s launch in Accra, Mr Adomado emphasized that the transfer marked a significant milestone in LICOBAG’s history, which originated following Ghana’s liberalization of the cocoa marketing sector in the early 1990s. Initially established to foster dialogue between industry regulators and address operational hurdles, the association’s influence expanded during the 2003/2004 cocoa season due to the “purple bean” issue, which disrupted cocoa procurement and threatened the operations of several licensed buying entities.

Adomado attributed the intensification of the association’s activities to changes in cocoa financing, pricing, taxation, and production, as well as the introduction of a new Cocoa Bill. Speaking at the event in Accra, the Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Mr Randy Abbey, advocated for reforms to Ghana’s cocoa financing framework to ensure sufficient liquidity for cocoa purchases while fostering domestic processing.

Highlighting the challenges posed by stringent collateral requirements, Abbey explained that COCOBOD is introducing a new funding model to provide consistent liquidity for cocoa purchases throughout the year and increase the involvement of local processors. He also unveiled a novel financing mechanism intended to raise the largest domestic bond in Ghana’s history, aimed at minimizing payment delays to licensed buying companies, enhancing purchasing efficiency, and decreasing indebtedness to banks.

Abbey proposed a revised cocoa pricing system that would enable producer prices to adjust according to global cocoa prices and other market dynamics, safeguarding farmers and stakeholders from market fluctuations. Additionally, he emphasized the importance of a new legislation to protect cocoa farms from unauthorized destruction and environmentally detrimental activities.

The COCOBOD CEO urged the Chamber to champion domestic cocoa processing, digitalization, traceability, sustainability, climate protection, and initiatives to combat child labor. Dr Andani Alhassan, the Chamber’s Chairperson, expressed appreciation for the Chamber’s establishment and called for stronger collaborations among licensed buying companies, farmers, COCOBOD, financial institutions, and international partners.

He stressed that cocoa remains a cornerstone of Ghana’s economic development and emphasized the need for ethical trade practices and sustainable growth.