Cocoa marketers urge Mahama to sign COCOBOD Bill without delay
The Chamber of Cocoa Marketers has urged President John Dramani Mahama to immediately assent to the Ghana Cocoa Board Bill, arguing that urgent action is needed to address longstanding challenges in the cocoa sector.
Acting President of the Chamber, Samuel Adimado, said the legislation provides an opportunity to introduce fresh ideas and reforms to strengthen Ghana’s cocoa industry.
Speaking to the media on the sidelines of the launch of the Chamber of Cocoa Marketers, Mr Adimado stressed that any delay in signing the Bill could slow efforts to transform the sector.
“With the briefing that we have been given, time is of essence. This is not politics. Time is of essence,” he said.
“As an agriculturist, I wouldn't recommend the President to wait in signing it. As an agriculturist, I know what it is,” he added.
The Chamber brings together key players in the cocoa value chain, including Licensed Buying Companies (LBCs), processors, financial institutions, insurers, transport operators and other industry stakeholders.
It is expected to provide a platform for businesses within the sector to engage government, the Ghana Cocoa Board (COCOBOD) and other relevant institutions on policies and challenges affecting the industry.
Call to protect cocoa farms
Mr Adimado welcomed provisions in the Bill aimed at protecting established cocoa farms, particularly in view of the substantial investment required to develop improved cocoa planting materials.
He said cocoa seedlings developed by the Cocoa Research Institute of Ghana represented a significant public investment because they were distributed to farmers at no cost despite the considerable resources required to develop them.
“Those of you who visit Cocoa Research Institute and you understand what they do there, you agree with me that it is a heavy investment. A heavy investment which is termed as a public good. Public good in the sense that the cocoa seedlings are released to farmers, they are not sold, but there is a heavy cost in breeding this planting material. Therefore, it is important that we protect it,” he said.
He argued that the destruction of established cocoa farms should require proper authorisation and, where necessary, compensation for affected farmers.
Stakeholder input and incentives
The Chamber also called for broad stakeholder participation in developing the guiding principles that will underpin the implementation of the new legislation.
Mr Adimado further advocated incentives for businesses engaged in cocoa value addition, saying operators in that area faced significant challenges and needed support to remain viable.
“It's a business and therefore, there should be incentives to ensure that if you are into value addition in Ghana, then you should survive as a business,” he said.
He assured industry players that the Chamber would engage government and other stakeholders through collaboration rather than confrontation.
“We should listen to all opinions so that it can be incorporated into the guiding principles. As a chamber, we are not going to be confrontational. We are businesses, and for businesses, we want to behave in the corridors that will ensure that we get the enabling environment that will enable us to grow and thrive as business,” Mr Adimado said.
The Ghana Cocoa Board Bill also proposes a new cocoa pricing framework under which farmers would receive 70 per cent of the gross free-on-board (FOB) value of cocoa, while producer prices could be adjusted in line with market indicators.