COCOBOD Records $840 Million Revenue Loss Due to Forward Sales Contracts
Ghana’s cocoa regulator, COCOBOD, incurred a revenue loss of $840 million in the 2023/2024 crop season due to forward sales contracts locked in at lower prices than prevailing market rates, Finance Minister Dr. Cassiel Ato Forson has revealed.
Presenting the 2025 Budget Statement in Parliament, Dr. Forson attributed the loss to the pre-sold contracts, which prevented Ghanaian farmers from benefiting from the recent surge in global cocoa prices.
“Mr. Speaker, these 2023/24 forward sales contracts, locked in at lower prices than current market rates, have resulted in revenue losses of $840 million for both COCOBOD and the Ghanaian farmer,” he stated.
The Finance Minister further disclosed that COCOBOD was unable to supply 330,000 tonnes of cocoa to fulfill its full contractual obligations for the 2023/2024 season. As a result, these obligations have been rolled over for supply under the new administration.
Dr. Forson warned that the financial strain on COCOBOD is set to worsen, with an additional $495 million in projected losses due to the roll-over of under-supplied contracts.
“This implies that for every tonne of cocoa delivered this year in fulfillment of the rolled-over contracts, COCOBOD and the Ghanaian farmer will lose $4,000 in revenue,” he explained.
Additionally, the Finance Minister noted that Ghana’s cocoa production has declined by nearly 50% over the past three years, compounding the challenges facing the industry.
The revelation highlights the financial difficulties COCOBOD is grappling with, as the country’s cocoa sector struggles with declining output and unfavorable contract arrangements.
