The Ghana Cocoa Board (COCOBOD) has said no cocoa farmer is currently owed money, despite outstanding payments to Licensed Buying Companies (LBCs).

Deputy Managing Director of COCOBOD, Ato Boateng, explained that the Board’s outstanding obligations to LBCs are mainly due to what he described as “under-recoveries” resulting from a period when global cocoa prices fell while the producer price paid to farmers remained relatively high.

Speaking on Channel One TV, he said COCOBOD effectively subsidised cocoa farmers by more than 100% during that period.

“So as we sit, we speak right now, not a single farmer is owed, you know, any money,” he stated.

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He said the difference between the international market price and the producer price resulted in residual amounts that COCOBOD now owes to LBCs.

According to him, the debt owed to LBCs should therefore not be interpreted as a cash flow crisis within COCOBOD.

“This really is as a result of what we call under-recoveries,” he said.

Boateng said COCOBOD expects to settle the outstanding payments once the new cocoa season begins and the Board starts receiving fresh cash flows.

He said COCOBOD had already discussed the issue with the Licensed Buying Companies Association and assured them that payments would be made from revenues generated during the new season.

“We’ve discussed a plan to sort of pay them. In fact, before we came here, we met with the Licensed Buying Companies Association and they brought this issue up,” he said.

He also rejected the suggestion that LBCs had “taken the fall” as a result of the unpaid amounts, describing the outstanding balances as normal trade payables.

“They are in business to basically trade. And in business, we have something we call trade payables. You buy, you sell, you don’t get paid on time,” he explained.

He acknowledged that the outstanding payments have an impact on the books of LBCs but said COCOBOD would work to ensure they remain financially capable of supporting the cocoa industry.

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The comments come as COCOBOD prepares for the opening of the new cocoa season, with the Board expected to rely on cash flows generated from the new crop to settle its outstanding obligations to LBCs.

DR/MA


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