Cocoa prices on the world market has taken a toll on revenue target of The Ghana Cocoa Board (COCOBOD) as the institution missed its production target.
COCOBOD has announced that it was in debt of about GH¢ 10 billion ($2.2 billion). The fall in cocoa prices globally, is a result of forecast for oversupply, this is what experts in the field say.
The Ghana Cocoa Board were not able to meet their revenue targets for the 2015/2016 season, as the production fell to 778,000 metric tons of beans instead of the targeted 850,000 tons.
A spokesperson for the institution, Noah Amenyah, stated that the board lost $1 billion in revenue in the current season which started in October.
Information on ICE Futures U.S., indicated that the price has declined 6.4 percent this year after cocoa for September delivery rose 0.3 percent to $1,989 a tonne on Thursday in New York.
Last year, the regulator undertook projects, assuming costs would be covered by output and price assumptions that didn’t materialize.
At the same time, it exceeded its usual annual spending of $150 million on roads in cocoa-growing areas by almost five times, Amenyah said.
While the board is facing mounting debts, the regulator is ruling out cutting farmers’ pay.
Mr. Amenyah said “Certain things will have to be delayed because of the liquidity problem,”