Chief Executive Joseph Boahen Aidoo told Reuters and other local media: “We are going to be self-financing.”
For the past 30 years, Ghana has relied on an annual syndicated loan to finance bean purchases from farmers. Aidoo said Cocobod paid a record 8% interest on its loan last year and claimed self-financing would save the regulator $150 million in interest to lenders.
Anthony Myers
CoocoaRadar and other media reported earlier this week it was seeking external financing.
Also, Aidoo confirmed that Ghana’s main cocoa season would open on 1 September, a month earlier than usual, with a reduced target of 650,000 tonnes due to lack of rainfall and the effect of climate change.
Reuters reported that Ghana, the world's second cocoa producer behind Cote d’Ivoire, witnessed one of its poorest harvests in a decade in the 2023-2024 season. This was attributed to harsh weather conditions resulting from El Nino, rampant smuggling, and swollen shoot disease.
In June, Cocobod estimated that Ghana's 2024-25 cocoa production will rebound to 700,000 MT from 425,000 MT in 2023-24.
Farmers are usually authorised to start selling their cocoa beans at a price set by Cocobod in October.
Cocoa prices continue to rise
On the markets, cocoa prices are sharply higher for a second day this week, with NY cocoa posting a 2-month high. Analysts are looking at dry weather in West Africa, which could curb the region's cocoa production and increase prices.
Cocoa trading was at 9372.925 USD/T on Tuesday, 20 August, a 238.844 USD/T (2.61%) increase from 9134.081 on the last trading session. September ICE NY cocoa (CCU24) Tuesday (20) was up +307 (+3.35%), and September ICE London cocoa #7 (CAU24) was up +54 (+0.85%).