Prime News Ghana

Cocobod seeks $1.3bn syndicated loan for cocoa purchases

By Justice Kofi Bimpeh
Cocoa farmers in Ghana
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Cocobod has begun talks with some banks outside the country to help facilitate about US$1.3 billion needed to purchase cocoa beans in the upcoming 2019/2020 crop season.

Chief Executive Officer of COCOBOD, Joseph Boahen Aidoo earlier told the media, “Initially we are expecting $1.3 billion. We tread cautiously even though our production has gone above 900,000 metric tonnes, we [still] tread cautiously because of the fall in the price of cocoa.

This is because when the price of cocoa is falling you need larger volumes of cocoa to collateralize.”

Last year, Cocobod raised a similar amount which was used in purchasing some 900,000 metric tonnes of cocoa beans for the crop season.

Stakeholders agree to $2,600 floor price for Ghana-Cote d'Ivoire cocoa

Key stakeholders in the cocoa business have agreed in principle to Ghana-Cote d'Ivoire $2,600 floor price for a tonne of cocoa.
The agreement was reached on Wednesday, June 12, 2019, in Accra after the two nations came to a consensus on the price.

The meeting has been necessitated by the fact that the two countries only get US$6 billion annually in the US$100 billion-dollar chocolate industry.

Both Ghana and Cote d'Ivoire supply more than 65 percent of the World's cocoa.

A tonne of cocoa, according to the International Cocoa Organisation, is being sold in excess of US$2,390 on the world market.

The Chief Executive Officer of COCOBOD, Mr Joseph Boahen Aidoo, told the media in Accra that the stakeholders, comprising traders, processors and manufacturers also agreed that Ghana and Cote D'Ivoire would not sell products from the 2020/21 cocoa season until further notice.

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Credit : Citinewsroom