The Chamber of Cocoa Marketers has urged President John Dramani Mahama to immediately sign the Ghana Cocoa Board Bill into law, arguing that delays could slow efforts to tackle long standing problems in the cocoa industry.
Acting President of the Chamber, Samuel Adimado, said the legislation offers an opportunity to introduce fresh ideas into a sector facing mounting operational and structural challenges.
Speaking to journalists on the sidelines of the launch of the Chamber, Mr Adimado stressed the urgency of the legislation. “With the briefing that we have been given, time is of essence. This is not politics. Time is of essence,” he said.
Chamber backs stronger cocoa framework
The Chamber brings together Licensed Buying Companies, processors, banks, insurance companies, transporters and other businesses operating across the cocoa value chain.
Its formation is intended to give industry players a stronger platform to engage the government, Ghana Cocoa Board and other institutions on policies affecting the sector.
Mr Adimado said the Chamber particularly welcomed provisions in the Bill aimed at protecting established cocoa farms, pointing to the substantial public investment behind the development of cocoa planting materials.
He said seedlings developed by the Cocoa Research Institute are distributed to farmers without charge, despite the considerable resources required to breed and develop them.
“Therefore, it is important that we protect it,” he said. He argued that the destruction of established cocoa farms should require appropriate authorisation and, where necessary, compensation.
Push for value addition incentives
The Chamber is also calling for incentives for businesses engaged in cocoa processing and value addition in Ghana.
Mr Adimado said companies investing in value addition face significant operational pressures and should receive support that allows them to remain commercially viable.
“It’s a business and therefore, there should be incentives to ensure that if you are into value addition in Ghana, then you should survive as a business,” he said.
The Chamber also wants industry stakeholders involved in developing the guiding principles that will determine how the new legislation is implemented.
Mr Adimado said the group would pursue engagement rather than confrontation in dealing with government and regulators. “We should listen to all opinions so that it can be incorporated into the guiding principles,” he said.
New pricing mechanism
The Ghana Cocoa Board Bill also proposes changes to the cocoa pricing system. Under the proposed framework, cocoa farmers would be guaranteed 70% of the gross free on board value, while producer prices could be adjusted in response to relevant market indicators.
For the Chamber, the immediate priority is to get the legislation into force and begin the work of reshaping the industry. “As an agriculturist, I wouldn’t recommend the President to wait in signing it,” Mr Adimado said.
The Chamber says its broader objective is to help create a predictable business environment in which cocoa producers, traders, processors and other value chain players can expand while Ghana retains more value from its cocoa industry.
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