COCOBOD has started out partaking various banking institutions exterior the nation to probably secure some $1.5 billion in loan for the next crop season.
The resources are envisioned to assistance the COCOBOD finance buys of cocoa beans for the 2019/2020 crop season.
Speaking to JoyBusness, the Main Government Officer of COCOBOD, Joseph Boahen Aidoo explained, “Initially we are anticipating $1.3 million and then with $200 million to make it $1.5 million. We tread cautiously even while our production have long gone higher than 900,000 metric tonnes, we [still] tread cautiously mainly because of the fall in the value of cocoa.
This is simply because when the selling price of cocoa is falling you will need more substantial volumes of cocoa to collateralize”
COCOBOD last year raised about $1.3 billion for the purchases of about 900 million metric tonnes of cocoa beans for the crop period.
The cocoa sector accounts for 4.5 for each cent of GDP and contributes 25 for each cent of Ghana’s goods export earnings.
Cocoa flooring value
Ghana and Ivory Coast have succeeded in obtaining an agreement with world-wide processors and entrepreneurs for the floor rate of cocoa beans to be pegged at $2,600 per tonne.
This follows an intense two-working day stakeholder engagement which hitherto ended in a snag on the very first working day.
With 65% of world generation, Ghana and Cote d’Ivoire are co-functioning to tackle typical difficulties in the output and promoting of cocoa, and to develop a conducive system for helpful engagement with traders, processors, suppliers, and stores on all related problems of mutual interest, like farmers’ cash flow.
There are fears that the sustenance of the new cocoa flooring rate could be tampered by small use fee of cocoa especially in Africa which accounts to just 4 for every cent of world wide use costs.