The Concerned Farmers Association of Ghana (CFAG) has sounded the alarm over the deteriorating financial state of the Ghana Cocoa Board (COCOBOD), which has placed the nation’s cocoa industry in a precarious situation.

In response, the CFAG is urging a declaration of state of emergency, further urging the government, stakeholders, and the international community to act swiftly to prevent the collapse of this vital industry.

Farmer General Nana Oboadie Boateng Bonsu, the convener of the Concerned Farmers Association of Ghana made this call in a statement dated August 22, 2024

"COCOBOD, the body responsible for purchasing cocoa from farmers, is reportedly facing severe financial challenges, leaving it unable to fulfil its obligations. This situation poses a grave threat to the livelihoods of over 800,000 cocoa farmers, many of whom depend on cocoa farming as their primary source of income," the statement said.

According to the statement, the inability of COCOBOD to purchase cocoa due to a lack of funds could have devastating consequences for the entire industry, which contributes significantly to Ghana's economy.

The International Cocoa Organization (ICCO) is explaining that Ghana’s cocoa industry accounts for approximately 20% of the country's GDP. The average income for a cocoa farmer in Ghana is estimated at GHS 2,500 (approximately $400 USD) per annum, according to a 2020 study by COCOBOD.

The current financial crisis, therefore, threatens not only the farmers’ livelihoods but also the broader economic stability of the country’ the statement said.

In response to this urgent situation, the CFAG is advocating for the establishment of a Cocoa Bank, funded by a nationwide fundraising campaign aimed at raising $5 billion.

This Cocoa Bank would provide the necessary financial resources to purchase cocoa from farmers, ensuring they receive fair prices for their produce and stabilizing the industry in the process.

The CFAG is calling on the government, all political parties, stakeholders, and the international community to rally behind this initiative.

The association has requested that all political parties temporarily halt their campaign activities to focus on addressing this crisis.

CFAG believes that a united effort is crucial to safeguard the future of Ghana’s cocoa industry and protect the livelihoods of those who depend on it.