Business News of Saturday, 19 May 2012

Source: citifmonline

Ghana choking from Cocoa price drop on World market

Projected revenues from cocoa exports for 2012 are set to drop significantly as Ghana begins to suffer from the plummeting cocoa prices on the world market.

This is according to COCOBOD as a result of downward trend of cocoa prices on the world market which is affecting revenues from the sale of the commodity.

Earlier this week, there were wire reports that Ghana’s first quarter earnings from cocoa had shrunk by over 6 percent already.

In an interview with Citi Business News, the Chief Executive of COCOBOD Tony Fofie expressed fear about the impact of the continuous fall of cocoa prices on the world market on Ghana’s economy.

He said “initially we did a forecast which was in the region of 3,000 dollars per ton and now we know how much we are getting on the world market, it is between 2,100 – 2,100 dollars per ton.

“We believe that this is an area for concern for all Ghanaians because the revenues that we’re going to get cannot be measured to what we had last year. That is something that we should be worried about.

“If you’re looking at what we’re going to get, it’s a combination of the volumes production and pricing so if the volumes are going up and the prices go down, we may have a problem.”**