Audio By Carbonatix
COCOBOD has defended the government’s decision to intervene in cocoa pricing during the current season, describing the move as an extraordinary but necessary step to protect farmers and safeguard the sector.
Head of Public Affairs at COCOBOD, Jerome Sam, said the decision deviated from the usual pricing pattern due to developments that emerged during the season.
Speaking on JoyNews’ PM Express on Monday, Mr Sam explained that Ghana traditionally announces cocoa producer prices at the start of the main season and again during the light crop season.
“This is a conventional thing, and it has been a practice all this while. At the beginning of the season, an official announcement will come, and then when we also get to the light crop season, there will also be an announcement,” he said.
According to him, prices announced at the beginning of the season often remain unchanged due to Ghana's pricing system.
However, he said events that unfolded from the beginning of last year and continued into this year forced authorities to take an unusual decision.
“It is quite unfortunate, something happened that was this year. So, starting from the beginning of last year, which goes into this year, something happened, so we have to have a change in the price somewhere, in February, which led to all these conversations,” he explained.
Mr Sam insisted the intervention was not taken lightly.
“I think it was necessary. Government and COCOBOD took that decision just to save a sector which significantly contributes to our GDP,” he said.
He noted that protecting cocoa farmers remained the overriding consideration behind the decision.
“Government took into consideration the income levels of the ordinary farmer. That is basically the first thing government took into consideration,” he stated.
Mr Sam argued that if authorities had strictly followed developments on the international market, producer prices would have fallen further.
“If we are to consider what is prevailing on the international market, then of course the price would have gone down again,” he said.
He pointed to neighbouring Côte d’Ivoire as an example of a system where producer prices are adjusted whenever international prices decline.
“Should you come to Côte d’Ivoire, where I find myself today, that’s what is happening, because they are having changes as and when the prices dip,” he noted.
But Ghana, he said, deliberately chose a different path.
“We made a decision that, look, the farmer has already been hit, so we need to make sure that the prices remain unchanged, so we can end the season,” he explained.
Mr Sam added that government would continue to balance farmer welfare with the long-term sustainability of the cocoa industry.
“Inasmuch as we are protecting the farmer, we are also ensuring a sustainable sector, which will continue to play that major role in the lives of the farmers, as well as the economy,” he said.
He stressed that the welfare of cocoa farmers remained at the centre of the decision.
“I can tell you that the government was largely very concerned about the income and livelihood of the ordinary cocoa farmer,” he said.
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