COCOBOD CEO, Dr. Randy Abbey, has revealed significant progress in reducing the cocoa sector’s rollover obligations while outlining the scale of financial and logistical challenges inherited by the current management.
Speaking on Gold Morning Conversation with Sena Numbo on Radio Gold, Dr. Abbey confirmed that COCOBOD has reduced outstanding rollover commitments to 98,000 tonnes, down from an earlier obligation of approximately 300,000 tonnes.
The reduction, he explained, created room for COCOBOD to improve producer pricing for the 2025/2026 cocoa season, moving the farmgate price from GH¢4,800 to GH¢7,200 per tonne, despite global price pressures.
“That is how we were able to move the farmgate price significantly,” he noted, attributing the improvement partly to the substantial reduction in rollover contracts.
Beyond rollover obligations, Dr. Abbey disclosed that COCOBOD is currently managing a large surplus of jute sacks, the essential packaging material for cocoa exports.
According to him, sacks imported in previous years were not cleared from the ports, resulting in accumulated stock both in warehouses and at the ports.
“For this current season, we did not rely on any of the jute sacks at the port that had not been cleared,” he said. “Those already in the stores are what we are using for this season, and we may even have enough for next season.”
He indicated that jute sacks were imported in 2022, 2023 and 2024 without full clearance, while a further $48 million irrevocable letter of credit was issued for the supply of 80,000 bales.
Under the new arrangement, COCOBOD has shifted from a CIF (Cost, Insurance and Freight) model to an Ex-Warehouse model, requiring suppliers to clear and deliver the sacks locally before payment is released. The funds are currently being held by Ghana International Bank in London and will only be released upon proof of delivery documentation.
Pressed on why additional imports were initiated when earlier shipments had not been cleared, Dr. Abbey acknowledged the complexity of the situation, noting that full reconciliation of stock levels at the ports is still underway in collaboration with the Ministry of Finance.
Those at the ports, he suggested, could be multiple times the volume currently in stores, pending verification once clearance processes are completed.
On COCOBOD’s broader financial position, Dr. Abbey revealed ongoing efforts to restructure the Board’s debt portfolio.
He disclosed that he has engaged the Ministry of Finance and the Bank of Ghana to convert approximately GH¢5 billion of debt into equity to strengthen COCOBOD’s balance sheet.
Additionally, he is seeking Cabinet approval for the transfer of approximately GH¢4.35 billion related to cocoa roads to the Ministry of Roads and Highways and the Ministry of Finance, a move he says would further clean up COCOBOD’s books.
“The Ministry of Finance definitely knows that we will need some time to pay the rest of the loans,” he said, stressing that the restructuring is necessary to stabilize the institution and free resources for core cocoa operations.
Ghana’s cocoa industry, which supports over 800,000 farm families and remains one of the country’s largest foreign exchange earners, has faced increasing pressure from disease outbreaks, production volatility, debt servicing obligations, and global price fluctuations.
Dr. Abbey’s disclosures paint a picture of an institution attempting to rebalance its financial commitments while maintaining farmer payments and export obligations.
The reduction of rollover tonnage, restructuring of debt, rationalization of procurement processes, and shift in import terms signal what the CEO describes as a deliberate effort to stabilize COCOBOD’s finances and restore operational discipline.
Whether these measures fully reset the Board’s financial trajectory will depend on production recovery, global cocoa market stability, and the outcome of ongoing audits and sector reforms.
