Professor Steve Hanke criticized Ghana’s COCOBOD for underpaying cocoa farmers, claiming they receive only a third of the market price. In response, COCOBOD’s CEO Dr. Randy Abbey reaffirmed commitment to increase farmer compensation and enhance cocoa processing capabilities, aiming to tap into the global chocolate market’s potential.
Steve Hanke, an economist at Johns Hopkins University, has labeled Ghana’s cocoa regulatory body, the Ghana Cocoa Board (COCOBOD), as a corrupt institution. He claims that COCOBOD significantly underpays farmers, offering them only one-third of the market price for cocoa, which he views as a substantial exploitation of farmers in Ghana.
COCOBOD’s CEO, Dr. Randy Abbey, countered these allegations by asserting his dedication to enhancing the value farmers receive for their produce. He pointed out that Ghana’s cocoa processing capacity stands at 504,780 tonnes; however, current operations run at less than half of this capacity, hampering economic growth from the cocoa sector.
Dr. Abbey emphasized that despite Ghana’s status as a leading cocoa producer, the country fails to fully capitalize on the lucrative global chocolate market. He mentioned that the President has instructed him to focus on increasing the export of processed cocoa products rather than just raw beans, aiming to boost domestic consumption and profit from the cocoa industry.
The accusations made by Professor Steve Hanke highlight significant concerns regarding the Ghana Cocoa Board’s pricing policies toward farmers. Conversely, Dr. Randy Abbey’s response underscores ongoing efforts to improve the cocoa sector’s efficiency and profitability. Emphasis on increasing the export of processed products suggests a strategic shift to benefit both farmers and the national economy.
Original Source: www.ghanaweb.com
