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There was no money when I assumed office in 2017 – Cocobod CEO

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The Chief Executive Officer of the Ghana Cocoa Board, Joseph Boahen Aidoo, has said he faced significant financial challenges when he assumed office in January 2017.

Speaking on Joy FM’s Super Morning Show, Mr Aidoo said although the previous administration secured an amount of $1.8 billion in 2016, by January 2017 no money was left when he took charge of Cocobod.

According to him, the money was spent on buying cocoa and other operational costs incurred.

“They bought about 600,000 metric tonnes before we came in. With cocoa, the peak harvest period is October, November, December, and January. So within the first quarter of the season, from October to December 2016, the previous administration bought over 600,000 metric tonnes.

“When we assumed office, there was no money, meanwhile, we had to buy cocoa till the end of the season from January to September,”he said.

Upon assuming office, Mr Aidoo said Cocobod faced the daunting task of continuing cocoa purchases without any funds available.

He said the best option was for Cocobod to seek assistance from the Bank of Ghana.

“We were forced to go to the Bank of Ghana to borrow. Within that period, we bought over 300,000 metric tonnes and we had to pay the farmers, we had to pay for haulage, the buyer’s margin, and operational costs.

“We sought help from the Bank of Ghana who became an intermediary between the Board and the consolidated banks and we got over GH₵2 billion,”he explained.

Ghana’s cocoa has been ravaged by adverse weather, bean disease and illegal gold mining, which often displaces cocoa farms.

Ghanian farmers are also smuggling more beans to neighbouring countries to sell them at higher prices than the state purchasing price, further eroding what little crop is available for delivery in Ghana.

According to reports, the world’s second largest cocoa producer is looking to delay delivery of up to 350,000 tons of beans to next season due to poor crops.

Chocolate makers around the world are raising prices for consumers after cocoa more than doubled in value this year alone following a third year of poor harvests in Ghana and Ivory Coast, responsible for 60% of global production.

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Cocoa products shortage looms, local processing companies likely to shut down

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If your favourite cocoa product is now scarce on the market or you are buying it at a higher price, then this is the reason.

Cocoa processing companies in Ghana have had their operations strained due to a decreased supply of cocoa beans resulting from recent low cocoa production and the increase in the price of the commodity on the international market.

The situation has forced many local cocoa processing firms to alter their way of doing business to minimise expenses as they contend with squeezed profit margins.

Citi Business News has gathered that there is a looming crisis in the cocoa processing industry and many of the local cocoa processing companies in the country have been hit by the low yields.

They are no longer getting the quantity of cocoa beans needed to meet their respective operational capacities. This limited availability of cocoa beans has forced a number of them to reduce production levels.

This has resulted in the underutilization of machinery, leading to inefficiencies and higher per-unit costs.

Some of them have had their processing schedules disrupted as they struggle to maintain steady operations.

Citi Business News has learnt that confectionery items like chocolates, spreads, and pebbles produced by the Cocoa Processing Companies have experienced an all-time decline of 30 per cent due to their inability to raise revenue to increase the processing of cocoa beans.

In terms of production, processed cocoa beans fell by 50 percent, with the production of cocoa liquor, butter, and powder dropping from 3,000 to 1,400 metric tonnes.

This is happening at a time when the company has already recorded a US$ 6 million loss in the first quarter of 2024.

The decline in cocoa production in the country has largely been blamed on the devastating effects of illegal mining, poor weather conditions, and the swollen shoot disease.

Some farmers are exchanging large acres of cocoa farms for as low as GHS 50,000.  Additionally, the smuggling of cocoa to neighbouring countries is another major challenge.

Ghana’s cocoa output for the 2023/24 season is expected to be almost 40% below a target of 820,000 metric tonnes when global cocoa prices hit US$ 10,000 per tonne this year.

In the first four months of 2024, Ghana’s trade balance narrowed after cocoa exports dropped. On a year-on-year comparison, cocoa output fell by about 50%.

Chocolate lovers in Ghana, for example, are now feeling the crunch as prices skyrocket. They are now paying more than GHS20 cedis for a 100g bar of Kingsbite chocolate, up from the GHS 14 it was selling for a few months ago.

The upward price adjustments could be a way for the Cocoa Processing Company to raise revenue and turn things around.

Consumers might be shifting to cheaper alternatives, but the reality is that the sales volumes of other businesses may not be meeting demand.

Other cocoa processing companies, such as Niche, Chocomac, and Cargill, are facing different levels of operational bottlenecks due to the scarcity of cocoa beans, according to Citi Business News sources.

Should this situation persist, it may lead to massive job losses and a likely shutdown of some of these cocoa processing companies.

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Gov’t lauded Kasapreko and Despite Group for collaborating with research institutions to produce quality products

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Mr Kwamena Quaison, Director, Science, Technology and Innovation, Ministry of Environment, Science, Technology and Innovation (MESTI) has lauded Kasapreko and Despite Group for collaborating with the research institutions.

He commended these giants companies at the opening of the Matchmaking and Information Sharing Workshop in Koforidua.

Speaking on behalf of Madam Ophelia Mensah Hayford, Minister of MESTI, he said Technology Transfer and commercialisation of Research had been a major policy concern for the government of Ghana.

He commended the research collaborations between the Kasapreko and the Centre for Plant Medicine and that of Despite Group of Companies’ with the Food Research Institute of the Council for Scientific and Industrial Research.

“Today, the alomo bitters of Kasapreko and Neat fufu of Despite have created lots of jobs and supported economic growth of the Ghanaian economy. It is our hope that more Kasaprekos and Despites will emerge from this matchmaking,” he said.

To improve research and make it easy accessible to entrepreneurs, he said the sector Minister had tasked the Science, Technology and Innovation Directorate of the Ministry to find an innovative solution to the weak research – industry collaboration and ensure that research outputs from research institutions are made available to entrepreneurs to create the needed jobs to support economic growth.

He acknowledged the significant roles played by universities and research institutes all over the world in the creation of new businesses, adding that the Ministry would accelerate that culture in Ghana.

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Cedi remains weak as cocoa export revenue drops by more than $500 million

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Illegal mining, climate issues, diseases, and smuggling activities compelled export revenue of cocoa to fall by more than $500 million in the first quarter of 2024 as Ghana’s annual production numbers continue to tumble.

The drop, reported in the Bank of Ghana’s Summary of Macroeconomic and Financial Data for May 2024, comes at a time when the cedi is struggling against major trading currencies, having lost more than 20% of its value against the dollar since the beginning of the year.

The Bank of Ghana data revealed that cocoa export revenue experienced a significant decline, dropping from over $1 billion in the first quarter of last year to approximately $496 million this year. This marks the lowest level in nearly nine years.

According to a Bloomberg report, “the currency of the world’s second-biggest cocoa producer depreciated 0.2% to 14.9335 per dollar by the close of trading in Accra [yesterday], the lowest level since at least 1994 when Bloomberg began compiling the data.”

The report also indicated that the current free fall of the cedi against the American greenback makes it “the fourth-worst performer among roughly 150 currencies tracked by Bloomberg worldwide, after the Egyptian Pound, Nigerian Naira and the Lebanese Pound.”

Cocoa on a decline, cedi struggles

Cocoa is a strategic commodity in Ghana and has been the backbone of its economy since the colonial period. In essence, when cocoa “coughs,” the Ghanaian economy catches a cold, especially its local currency, the cedi. In fact, Ghana’s smaller cocoa harvest in the 2023/24 season has hit the country’s external payments position, as its trade surplus fell by more than half in the first two months, posing a risk to the exchange strength of the cedi, which has lost more than 20% against the US dollar.

The industry regulator, Ghana Cocoa Board (COCOBOD), is aware that smuggling is significantly reducing its share of global cocoa production, which has dropped from 20% to 13%. The upcoming crop season looks challenging for Ghana, as illegal mining activities continue to threaten its projected yields. The sale of cocoa farmland to illegal miners, coupled with the pollution and destruction of water bodies and lands, jeopardizes Ghana’s cocoa yield for the 2024-25 season, which could fall below 400,000 tons.

For COCOBOD to secure its next cocoa syndicated loan, it needs to assure investors that it can guarantee the production of beans to match the target loan figure of $1.5 billion. Already, the regulator’s target for this year was truncated from $1.2 billion to $800 million, for which it was able to provide beans for only $600 million—the remaining $200 million was canceled as COCOBOD could not provide beans to back it.

For Ghana to obtain more than it was able to gather this year from the syndication exercise, it needs to prove to investors that it can produce more beans in the next season. Ensuring the necessary bean production will be difficult, and one reliable way to prevent the smuggling of an additional 200,000 tons next season is to increase the farm gate price. However, this would impose a significant fiscal constraint on COCOBOD, which is already struggling to service its current debt obligations.

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World Cocoa Farmers Organisation proposes need for reforms to Lands Commission

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The World Cocoa Farmers Organisation (WCFO) Ghana chapter is working to secure proper land documentation for farmers.

It presented a proposal to the Executive Secretary of the Lands Commission in Accra, focusing on land tenure issues faced by cocoa farmers, especially tenant farmers in the Western North Region.

The proposal aims to help farmers secure legal documents that will protect cocoa and agricultural farmland from litigation.

Contention

In Ghana, land ownership is mostly governed by customary systems, with chiefs controlling the majority of agricultural land.

Due to the importance of land and the lack of documentation among most tenant cocoa farmers, contentions often arise in cocoa-growing regions about access and ownership rights.

Moses Djan Asiedu, Board Secretary of the World Cocoa Farmers Organization, explained that participatory research conducted by WCFO found that about 70% of cocoa farmers lack legal ownership documents.

This has led to insecure tenancy and an unwillingness by cocoa farmers to rehabilitate farms affected by disease or age, thus discouraging long-term investment.

He also stated that the complex land registration processes in Ghana have further discouraged cocoa farmers from initiating the registration process.

Asiedu mentioned that the proposal is expected to address land tenure issues faced by cocoa farmers, especially tenant cocoa farmers, across the cocoa-growing regions in Ghana through relevant stakeholders such as the Lands Commission, the Office of the Administrator of Stool Lands, and COCOBOD.

Emelda Amoah, Advocacy Manager of the World Cocoa Farmers Organization, emphasized the need for collaboration between the two organizations in explaining their final proposal to the Commission.

“There is an urgent need for key stakeholder collaboration to simplify the registration process by ensuring that cocoa farmers are assisted with obtaining the requirements for registration and obtaining legal land documentation,” she added.

Commission

The Executive Secretary of the Lands Commission, Surveyor Benjamin Arthur, explained that their primary duty at the Lands Commission is to provide high-quality, reliable, and efficient services in geographic information, guaranteed tenure, property valuation, surveying, and mapping to their stakeholders, including farmers.

“It is my great pleasure to welcome you all warmly to the Lands Commission to be part of the proposal presentation between the Lands Commission and the World Cocoa Farmers Organization (WCFO).

“I believe in proper documentation, and let me assure you that the proposal before me will be thoroughly examined. Possible recommendations or guidance will be suggested to your organization to help address the challenges farmers are facing in cocoa-growing regions in Ghana,” he said.

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Non-State actors urge countries to allocate 10% of ublic investment to agricultural sector under CAADP Post-Malabo Agenda

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Non-State Actors have called on member countries under the Comprehensive African Agricultural Development Programme (CAADP) to allocate 10% of their public investment into agriculture.

CAADP is an Agenda 2063 continental initiative that aims to help African countries eliminate hunger and reduce poverty by fostering economic growth through agriculture-led development.

This call was made during the Non-State Actors engagement workshop on the CAADP Post-Malabo Agenda held at the CSIR-STEPRI conference room in Accra on Thursday, June 6, 2024.

The Acting Executive Director of the Peasant Farmers Association of Ghana, Bismark Owusu Nortey, explained that CAADP operates in ten-year phases. The initial phase, known as the Maputo Declaration, spanned from 2003 to 2013.

The Malabo Declaration followed in 2014 and is set to conclude in 2025, thus the importance of understanding the post-Malabo agenda.

He speculated that the post-Malabo agenda might be named ‘Kampala,’ although this was not confirmed.

National President of the Peasant Farmers Association of Ghana, Weipa Addo Awal Adugwala emphasized that in the new phase of CAADP Agenda 2063, African countries must incorporate climate change considerations into their budgets due to the significant impact of global climate changes on farming in Africa.

 He stressed the need for mechanized farming methods under the post-Malabo agenda.

Focusing on Ghana, he urged the government to take decisive action against illegal mining (galamsey), which is devastating lands and water bodies and contributing to the rising prices of food commodities.

He cited a Ghana Statistical Service report that showed the price of onions increased from Gh¢600 per bag to Gh¢1,500 per bag within one week.

Despite government promises to support onion farmers, Adugwala noted that these promises have not been fulfilled.

He recommended that the government should deploy more National Service personnels to the agricultural sector to support the second phase of the Planting for Food and Jobs program.

Speaking on the Maputo and Malabo declarations, the biennial review (BR) process, and the results of the 4th biennial report, the CAADP Focal Person at the Ministry of Food and Agriculture (MOFA), Faisal Mukaila, delved into the technical aspects of CAADP.

 He explained that the BR is conducted every two years to assess countries’ progress.

In 2017, Ghana was not on track according to the BR, but by 2021, the country was progressing well, being added to the two existing assessment indicators: ‘on track’ and ‘not on track,’ with the new category ‘progressing well’ introduced in 2021.

Mukaila highlighted that ECOWAS was reported to be the best-performing sub-region in Africa under the BR 2023, with Ghana ranking as the best among ECOWAS countries and 5th on the African continent.

He noted that Ghana needs to focus on reducing poverty rates at the international level.

He outlined some challenges faced by Ghana under the BR, such as difficulties in tracing the value of trade in services and the need for expert collaboration.

Mukaila called on institutions to improve data collection and urged traditional leaders to help farmers gain access to land for agricultural activities.

He recommended increasing investment in irrigation and boosting public expenditure to meet the 10% target.

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Prices of vegetables shoot up by 100% in Kumasi

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Prices of vegetables like carrots, lettuce, green pepper have seen a sharp increase affecting their sale on the market.

The situation is forcing many vendors to dispose of the perishable goods as some traders say they are beginning to record low sales and cannot break even.

Luv Business engaged actors in the value chain as experts predict an influx of the commodities in the coming months.

“Two of the carrots are selling at 15 Ghana cedis and four of the green peppers go for 5 cedis,” Helen, a vegetable trader, at the Ejisu market explains the costs of the varieties of vegetables she sells.

“I can’t sell this small quantity at a lesser price because I won’t break even,” she added.

Dorcas, also a vendor, sells cabbage, lettuce and other vegetables at the market.

The cost of her commodities has shot up twice the usual price.

“You could get more for the vegetables you buy. But now you will get less,” she lamented.

Prices of vegetables have in recent times increased astronomically, seeing an almost 100% price surge.

The traders attribute the price hike to the scarcity of the commodities and cost involved in transporting them from neighboring countries.

“We import some from Asante Mampong and others from Morocco. They are scarce because of the low rainfall. The lorry fares have also shot up the price,” the traders said.

Ghana has over the years imported a number of its farm produce like vegetables from neighboring countries including Côte D’Ivoire, Burkina Faso, Niger and Mali.

The incessant taste for foreign produce begs the question, “what is happening to the agricultural sector?”

Experts attribute the dwindling sector growth to the changing weather pattern and other logistical support for industry players, especially farmers.

Director of Agriculture in the Ejisu municipality, Dr. David Anambam says the reduced supply of the commodities is a major factor contributing to the soaring prices.

He says a farming system dependent on irrigation is needed for all-year-round production to promote agriculture in Ghana.

“Many farmers are not working now during the off season especially those without irrigation. Because there are a few left and the demand is more than the supply, it will surely shoot up. If you want to promote agriculture under rainfed agriculture, I don’t think so,” he said.

Anthony Okyere, a vegetable farmer in the Ejisu municipality, like many farmers across the country is faces existential threats to his inherited farming business.

“The high sun intensity burnt all the crops. I nearly gave up after seeing my farm,” he sadly recounted.

For centuries, farming in Ghana has solely been dependent on rainfall, which agricultural experts say is a bane to the growth of the sector.

An agricultural economist at the Crops Research Institute of the Council for Scientific and Industrial Research, Dr. Natson Eyram Amengor is proffering possible solutions to the perennial challenge.

“If we want an immediate solution, it would be on improving the access roads and for long term, we should look at moving away from rainfed agriculture. We must enhance our storage and processing systems. Most often there are not storage facilities, so during the times where there is abundance of foodstuff, they go waste,” he said.

The increased prices of the commodities are heavily affecting their sales as the traders begin to experience low sales and post-harvest losses.

“Our commodities are spoil. We have to dispose them of,” Dorcas, the vegetable trader, added.

But despite the prevailing scarcity and challenging economic climate, vegetable consumers and traders should expect an ease soon.

“Somewhere in June-July we should expect more vegetables on the markets once the farmers begin to have the rains,” Dr. Anambam assured.

For the time being, lovers and vendors of vegetables must bear the brunt of soaring commodity prices.

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AfDB revises Ghana’s growth rate to 3.4% for 2024, 4.3% for 2025

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The African Development Bank has revised Ghana’s growth rate to 3.4% for 2024 and 4.3% for 2025.

This is higher than the 2.8% it earlier predicted in February 2024.

According to the AfDB, the revised growth rate is stronger than earlier anticipated, describing the  medium-term growth outlook as positive.

The expected growth rate would be led by industry and services on the supply side and private consumption and investment on the demand side.

Ghana will thus place 14th ahead of Nigeria in West Africa with the strongest Gross Domestic Product (GDP) growth.

Nonetheless, the outlook is clouded by several factors, including the impact of fiscal consolidation under the Post-Covid Programme for Economic Growth, the lingering effects of Russia’s invasion of Ukraine, limited access to finance and foreign exchange, and global macroeconomic shocks. However, AfDB said prudent macroeconomic management policies could mitigate the risks.

To fast-track structural transformation, the African Development Bank urged Ghana to enhance its competitiveness by easing infrastructure bottlenecks; accelerate agro-industrialization by strengthening skills development, among others.

“Ghana’s structural transformation needs reinforcement. Productivity has stagnated in services, the dominant employment sector, and is rising only slowly in industry and agriculture. Agriculture’s employment share declined from 53.9% in 2007 to 29.8% in 2019, while industry’s share rose from 14.1% to 21.0% and services’ share rose from 31.9% to 49.2% over the same period.  To fast-track structural  transformation, Ghana  must enhance its competitiveness by easing infrastructure  bottlenecks;  accelerate  agro-industrialization  by strengthening  skills  development, value addition, and private sector development; and create a policy framework for technology adoption and innovation”.

West African growth rate to hit 4.2%

Meanwhile, growth is projected to pick up in West Africa, rising from an estimated 3.6% in 2023 to 4.2% in 2024 and consolidating at 4.4% the following year. This is an upgrade of 0.3 percentage points for 2024 over the January MEO  2024 projections, reflecting stronger growth upgrades in the region’s large economies— Côte d’Ivoire, Ghana, Nigeria, and Senegal.

Real GDP growth is projected to rise to 3.7% in 2024 and will exceed the rate posted

in 2022 by 2025, reaching 4.3% as most of the effects of the aforementioned factors fade.

The projected rebound in Africa’s average growth will be led by East Africa (up by 3.4 percentage points) and Southern Africa and West Africa (each rising by 0.6 percentage points).

Importantly, 40 countries will post higher growth in 2024 relative to 2023, and the number of countries with more than 5 percent growth rate will increase to 17.

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Farmer at 80 yrs killed over woman at Assin Otabilkrom

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An 80-year-old farmer, Kwesi Arhin has been stoned to death by a man known as Kwabena Badu after he suspected the deceased of having an affair with his girlfriend at Assin Otabilkrom of Assin South District of the Central Region.

The incident happened on Wednesday May 29, 2024 around 7 PM when the suspect had information that her girlfriend Ekua Ansama has visited the deceased to spend the night with him.

He then rushed to the house of the deceased and hit him with sticks and stones to death.

The suspect Kwabena Badu has been arrested by Assin Darmang police command.

Information gathered by the Kasapa news Yaw Boagyan indicates that both the deceased, Uncle Kwesi Arhin and the suspect Kwabena Badu are not customary or legally married to the woman Ekua Ansama, who is believed to be in her early 40s.

According to an eye witness who is the deceased’s neighbor, the suspect Kwabena Badu threatened to kill him too if he tried to intervene, which scared him from rescuing the deceased old man.

Emmanuel Arhin, the grandson of the deceased explained that he had been advising his grandfather on so many occasions to let go of the woman Ekua Ansama since the suspect Kwabena Badu has been threatening to kill him several times, but his grandpa wouldn’t listen.

The body of the deceased has been deposited in Abura Dunkaw District Hospital morgue pending further investigations by the police.

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Ghana imported GHC166,240,503 worth of mangoes from Burkina Faso in 2023 – GSS Trade Report

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Ghana imported a total of one hundred and sixty-six million, two hundred and forty thousand, five hundred and three ( GHC 166,240,503.) Ghana cedis worth of mangoes from Burkina Faso in 2023, a Ghana Statistical Service Trade Report 2023 has disclosed.

The report further revealed that Ghana imported one hundred and eighty-five million, two hundred and five thousand,two hundred forty-six ( GHC185,205,246) Ghana cedis worth of cocoa beans, standard quality raw beans from Cote D’Ivoire in 2023.

Ghana also imported GHC141,359,094 worth of Palm oil from Togo in 2023.

A total of GHC154, 796,314 worth of Palm oil was also imported from Cote D’Ivoire in 2023.

The GSS Report further indicated that Ghana imported GHC 1,893,864,945 worth of Shea nuts from Burkina Faso in 2023.

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