Ghana Cocoa Board (COCOBOD) Chief Executive Officer, Dr. Randy Abbey, has rejected claims that the proposed Cocoa Board Bill 2026 will restrict cocoa farmers from intercropping. He described these assertions as deliberate misinformation about the new legislation.
Dr. Abbey clarified that the Bill aims to tackle persistent challenges within the cocoa sector. These issues include the destruction of cocoa farms, financial constraints, and inadequate returns for farmers. The legislation seeks to give cocoa farms greater protection by requiring authorisation before cocoa trees can be destroyed.
This move comes as cocoa farms face increasing threats from illegal mining, logging, and real estate development. Dr. Abbey noted that he receives weekly petitions from farmers reporting farm destruction. The cocoa industry has supported Ghana's economy for over a century, necessitating strong protective measures.
The COCOBOD boss insisted that proposed restrictions are not a ban on growing food crops alongside cocoa. He explained the provisions protect cocoa trees and farms from destruction. They do not prevent farmers from adopting approved farming practices.
Dr. Abbey accused certain individuals and groups of intentionally distorting the Bill's contents. He warned that such claims could undermine reforms intended to strengthen the industry. These reforms are crucial for the sector's long-term health.
The Bill also introduces tighter financial controls at COCOBOD. This includes greater compliance with the Public Financial Management Act. These measures aim to prevent decisions that could expose the cocoa sector to significant financial risks. Stronger financial oversight is a key component of the reform agenda.
Furthermore, the proposed legislation provides for a new cocoa pricing framework. Under this framework, farmers would receive 70% of the gross free-on-board (FOB) value of cocoa. Producer prices could also be reviewed in response to international market movements.
This arrangement ensures farmers benefit when global cocoa prices rise. It also reduces the risk of financial losses when prices fall. This aims to create a more stable and equitable income for cocoa farmers.
Dr. Abbey described the proposed legislation as the most significant overhaul of Ghana's cocoa industry since the 1984 law. The reforms intend to improve the sector's financial sustainability. They also aim to strengthen farmer welfare, promote local processing, and drive the industrialisation of the cocoa value chain. This comprehensive approach seeks to secure the future of Ghana's vital cocoa industry.
The Bill's passage and implementation will be closely watched by farmers, industry stakeholders, and financial markets. Its success hinges on effective communication and transparent execution. Protecting cocoa farms and ensuring fair farmer compensation are critical for Ghana's economic stability. The reforms could significantly impact the livelihoods of hundreds of thousands of cocoa farmers across the country. This legislative effort represents a strategic move to safeguard Ghana's primary agricultural export.