Ghana’s Cocoa CEO Assures Farms Won’t be Harmed by Reforms

COCOABOD CEO Dr Randy Abbey has dismissed claims that the proposed Cocoa Board Bill 2026 will harm cocoa farmers by restricting their ability to intercrop. He described the allegations as deliberate misinformation about the legislation.

Defending the Bill

The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD) said the Bill was developed to tackle persistent challenges within the cocoa sector. These include the destruction of cocoa farms, financing constraints, weak financial controls, limited domestic processing, and inadequate returns for farmers.

Dr Abbey said the legislation specifically seeks to give cocoa farms greater protection by requiring authorisation before cocoa trees can be destroyed, uprooted, damaged, or felled, except where such action forms part of an approved rehabilitation programme. He emphasized that this provision aims to protect cocoa trees and farms from destruction rather than preventing farmers from adopting approved farming practices.

Accusations of Misinformation

Dr Abbey accused some individuals and groups of intentionally distorting the contents of the Bill. He argued that such claims could undermine reforms intended to strengthen the industry. The COCOBOD boss described the misinformation campaign as unfortunate and said it was intended to misinform stakeholders and the public about the true nature of the reforms.

Financial Reforms and Cocoa Pricing

The proposed legislation also introduces tighter financial controls at COCOBOD. This includes greater compliance with the Public Financial Management Act to prevent decisions that could expose the cocoa sector to significant financial risks. Additionally, the Bill provides for a new cocoa pricing framework under which farmers would receive 70% of the gross free-on-board value of cocoa.

Dr Abbey explained that the arrangement is intended to ensure farmers benefit when global cocoa prices rise while also reducing the risk of financial losses when prices fall. He described the proposed legislation as the most significant overhaul of Ghana's cocoa industry since the 1984 law.

Impact on the Cocoa Industry

The reforms are intended to improve the sector's financial sustainability, strengthen farmer welfare, promote local processing, and drive the industrialisation of the cocoa value chain. The need for stronger protection of cocoa farms has become urgent due to activities such as illegal mining, logging, and real estate development. Every week, Dr Abbey receives petitions from farmers complaining that their cocoa farms are being destroyed for one activity or another.

The proposed legislation aims to address these challenges and ensure the long-term viability of the cocoa industry. With the Bill currently in the legislative process, stakeholders and the public will be watching closely to see how the reforms are implemented.

Source: JOY