Text messages being circulated among COCOBOD workers and sighted by The Finder is soliciting support for demonstrations against the new Chief Executive if management fails to increase salaries soon.

Big drop in cocoa prices
The price of cocoa on the world market has fallen from $3,000 in June last year to about $1,900 currently.

Farmers paid $400 more than world market price
Despite this fall in price, government is paying cocoa farmers $400 more for one tonne of cocoa than the current world market price.

Guaranteed price policy bites
The government is forced to pay because of the forward sale policy which offers farmers guaranteed price for the commodity agreed with farmers long before harvesting time.

Farmers may not receive annual bonuses
With these challenges, COCOBOD Chief Executive, Joseph Boahen Aidoo, has hinted that government may not be able to pay farmers annual bonuses for the 2016/2017 season.

ICU, GAWU set for pay negotiations
But, when contacted, General Secretary of the Industrial and Commercial workers Union (ICU), Solomon Kotei confirmed to The Finder that ICU and General Agricultural Wokers Union (GAWU) are set to commence negotiations.

Over 4,000 workers
The over 4,000 workers of COCOBOD belong two unions, namely ICU and GAWU.
Increment to be backdated to October 2016

According to Kotei, any increment to be agreed upon would take effect from October 2016 since the negotiations would cover 2016/2017 cocoa season.

He explained to The Finder that the negotiations were delayed because of transition challenges.
Cocoa roads suspended over GH₵3.5bn debt

The workers are demanding the salary increase at a time when Cocoa roads, which accounted for about GH₵3.5 billion of the debt, have been suspended pending the outcome of an ongoing audit.

Huge investments urgently needed
The demand for salary increment is also coming at a time when the government has to make huge investments into hand pollination and rehabilitation of moribund farms to increase production and save the industry from total collapse.

40% of cocoa trees to be cut
Currently, 40% of all cocoa trees in Ghana are not productive. Out of the 40%, 17% have been affected by swollen shoot disease while 23% are over 30 years and had become unproductive.
The only solution is to cut down all the 40% of cocoa trees and plant new ones which means that government has to investment in free seedlings for the farmers.

From 800,000 tonnes to one million tonnes by 2020
Ghana, the second largest producing country in the world, targets to raise production to one million tonnes by 2020, from the current annual output of 800,000 tonnes.

Poor yields per hectare
The investments are desperately needed because data from COCOBOD revealed that while farmers in other countries harvest 32 bags of raw cocoa beans from one hectare, some Ghanaian farmers do not even make one bag from a hectare.

World Bank indicts COCOBOD
A World Bank report released last month stated that corruption and regulatory mismanagement of Ghana’s cocoa industry are denting production and harming farmers, underlining the need for reform.

According to the report, a lack of transparency and low prices made it impossible for farmers to plan future crop investments.

“The board (COCOBOD) has been unable to achieve one of its most important goals – to stabilise farm-gate prices at levels that permit farmers to earn an adequate return on their land, labour and capital,” the report said.

Instead, COCOBOD, which is also Ghana’s sole cocoa exporter, has been more focused on getting a better margin on exports, which increases government revenue in the short term but dents farmers’ wages and investment.

The export margin made in Ghana is about double that of neighbouring Ivory Coast, the World Bank said.
“Successive governments have prioritised revenue collection, treating the final price received by farmers as a secondary consideration rather than an objective,” the World Bank said.

Reforms needed
“Institutional arrangements and policy framework could greatly increase cocoa output with a minimal budgetary impact,” the draft report said.

“COCOBOD also has control over the distribution of fertilisers and disease-controlling chemicals to farmers. Its mismanagement in this area has also hurt production,” the World Bank said.

“Distribution is often erratic and is subject to corruption and capricious political interference,” the World Bank said.
Sometimes, farmers never receive the supplies, which are often smuggled to neighbouring countries.

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Source: The Finder

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According to him, the governing National Democratic Congress (NDC), has failed to sustain the growth of the cocoa industry after 8 years in power.

He said the Mahama-led administration is collapsing the once vibrant sector with its poor policies.

He also accused the NDC of skewing policies such as the mass cocoa spraying programme introduced under the administration of the former President John Kufour, to benefit only NDC loyalists.

Dr. Bawumia was addressing residents in the Adamkwaman community in the Central Region, where he is currently touring as part of his election 2016 NPP campaign.

“For the cocoa business that has dwindled, we are going to revive it. Under the President Kufour administration, the mass spraying exercise was doing well without discrimination… The NDC has politicized all of Kufour’s interventions. We will give farmers fertilizers to help them in their work. That is why we must vote them [NDC] out and bring in Nana Addo to effectively do all of these for cocoa farmers,” he said.

‘Government increases producer price of cocoa’

Government on Saturday [October 1] announced an increase in the producer price of cocoa by 11.76%.

A 64kg bag of cocoa, which previously sold at GH¢425, will now be sold at GH¢475.00, an 11.76% increase, representing a 77.45% increment of the net of the FoB [Free on Board].

The Deputy Minister of Finance, Ato Casseil Forson made the announcement at the celebration of the International Cocoa Day at Tepa, in the Ahafo Ano North District of the Ashanti region.

The celebration was under the theme, “Transforming the cocoa sector for economic growth- The role of the youth.”

The Minister, who doubles as the Chairman of Producer Price Review Committee, said the new price takes effect from October 1, 2016

‘Cocoa farmers unhappy with increase’

But some cocoa farmers in the Ashanti Region expressed disappointment in government over what they describe as a ‘paltry’ increase in the producer price of cocoa.

According to them, they expected an increase from the current ¢425.00 per 64kg bag to an amount of over ¢500.00. They said the new price still meant their cost will outweigh their income.

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By: Jonas Nyabor/citifmonline.com/Ghana

The post NPP will revive ‘ailing’ cocoa sector – Bawumia appeared first on Citi 97.3 FM - Relevant Radio. Always.