LBCs protest ‘unfair’ treatment

Some indigenous Licensed Buying Cocoa firms are unhappy that multinational firms are gradually taking over the cocoa industry.

According to them, Cocobod, regulator of the cocoa industry, is supporting the foreign firms, making it difficult for the businesses of the local LBCs to grow.

Speaking to Business Finder, an industry watcher said the neglect of local LBCs by Cocobod is making it difficult for the local LBCs to receive loans and guarantees from financial institutions.

He therefore called for the review and enforcement of the local content law to help indigenous firms to grow and create more jobs for the youth.

According to him, the poor relationship between Cocobod and some local firms is affecting local cocoa manufacturing firms.

“Look at Cocoa Processing Company, it is because of lack of support from Cocobod that has crippled its operations. If local LBCs were supported they could have supplied cocoa beans to CPC to process and manufacture.”

He added that “the local LBCs provide jobs for many of the unemployed youth in the cocoa growing areas so they need support from Cocobod. Cocobod is the mother of the LBCs and must support them.”

He also called for prompt supply of fertilizers to cocoa farmers to enable them grow more cocoa beans.

Already, some farmers in the Ashanti and Brong Ahafo regions are unhappy that they have not received fertilizers for this crop season.

Ghana is expected to miss its cocoa production target for the 2015/2016 crop season. As at the end of the main crop season, it had bagged only 690,000 metric tonnes.

The light crop season began in July 2016 and is expected to end in September 2016.

In May 2016, Parliament approved US$2 billion cocoa syndication loan to enable Cocobod purchase cocoa beans for the 2016/2017.