Cocobod Releases Funds For Cocoa Purchase

The Ghana Cocoa Board (COCOBOD) has indicated that it has released funds to Licensed Buying Companies (LBCs) for the purchase of cocoa for the 2016/2017 crop season.

This was disclosed in a release issued by the Public Affairs Department of COCOBOD.

“Ghana Cocoa Board (COCOBOD) would like to assure stakeholders in the cocoa industry, especially our cherished farmers that sufficient funds have been released to qualified Licensed Buying Companies (LBCs) to purchase cocoa for the 2016/2017 cocoa season,” the release indicated.

It said “seed funds are released to LBCs for cocoa purchases on revolving basis. This means that LBCs are given specific amounts based on their bank guarantees, and it is only after they have purchased and delivered quantity of cocoa equivalent to the amount released that additional funds are disbursed for cocoa purchases.”

It explained that “therefore, rumours being peddled within the Ghanaian cocoa fraternity, especially among our cherished farmers, that funds for cocoa purchases are unavailable are totally false.”

“It may be recalled that in September this year, Ghana Cocoa Board secured a syndicated loan of $1.8 billion for cocoa purchases for the 2016/17 crop season. The funds are adequately being used for the purpose for which they were secured.”

“We wish to use this opportunity to reiterate that the producer price announced by government on 1st October for the 2016/2017 crop season still stands at GH₵475.00 per bag of 64kg gross weight.

The amount, which includes a bonus of GH₵5.00 per bag, represents 77.45% of the net FOB,” COCOBOD said in the statement.

It encouraged farmers to insist that they are paid GH₵475.00 per bag of 64kg gross weight at the point of sale.

“COCOBOD is committed to advancing the cause of farmers by ensuring that they receive prompt payment for their produce, and will continue to implement strategic measures to make cocoa farming a profitable venture and improve livelihoods of all farmers.”