Workers of Cocoa Processing Company (CPC) have expressed fear of losing their jobs in the not too distant future because shareholders have not taken any serious action to save the company from imminent collapse since it was shut down in January for lack of cocoa beans.

CPC, formerly wholly-owned by the state, is partially privatised after the government offloaded 25% of its stake and listed it on the Ghana Stock Exchange in February 2003.

The government owns about 48% of CPC’s shares, with state-run industry regulator Ghana Cocoa Board controlling about 22%.

The workers, who do not want to be named, told The Finder that ever since the company resumed operations after a one-month shutdown this year due to lack of beans, they have received only 500 metric tonnes, out of the 64,500 metric tonnes of cocoa beans needed from COCOBOD, which they completed processing in March.

They explained that but for a tolling arrangement with Touton Côte d'Ivoire, they would have been sent home for lack of cocoa beans.

According to them, the Ivory Coast branch of French cocoa processing company Touton Côte d'Ivoire has saved them from being jobless for now.

They stated that Touton Côte d'Ivoire has entered into a tolling arrangement with CPC in which CPC processes cocoa beans and cocoa liquor belonging to Touton Côte d'Ivoire for a fee.

The workers said with the fee collected from Touton Côte d'Ivoire, CPC is able to pay workers’ salary, even though it delays.

However, The Finder gathered that management has refused to declare how much CPC is charging for the tolling arrangement, even though union is demanding to know.

According to them, without this life-saving agreement, CPC would have sent all workers home since they have no cocoa to process.

State-run industry regulator COCOBOD, which controls about 22% of shares in CPC, has decided to supply only 1,000 metric tonnes of cocoa beans this year because CPC owes COCOBOD at least $50 million in arrears for raw beans supplied over the years.

So far, COCOBOD has delivered 500 metric tonnes of beans, which the company has finished processing and waiting for the remaining 500 tonnes.

Even though staff of CPC believe that management should be answering questions for running down the company, the Managing Director, Nana Oduro Owusu, who retired in March 2016, remains at post.

As of today, CPC has received only 500 tonnes of cocoa beans from Ghana Cocoa Board (COCOBOD), out of a mere 1,000 tonnes COCOBOD promised to give to CPC this year.

The 1,000 tonnes is a far cry from the 64,500 tonnes capacity of CPC, which has no money to buy cocoa beans.

However, Touton Côte d'Ivoire, under the tolling agreement, supplied CPC with 1,000 metric tonnes of cocoa liquor, which CPC has completed processing into butter and cake.

From now to December, CPC will also process 12,000 metric tonnes of cocoa beans for Touton Côte d'Ivoire.

In addition, CPC will process another 700 metric tonnes of cocoa liquor for Touton Côte d'Ivoire this year.

CPC roasts cocoa beans, which are grinded into masse. The masse is sent to confectionary factory to produce chocolate.

If the masse will not be used for chocolate, then butter will be extracted from it and the cake used for production of cocoa powder products.

Ever since the expansion of the annual production capacity of the company from 30,000 metric tonnes to 64,500 metric tonnes at a cost of over $31million, the company’s highest production has been 25,000 metric tonnes, an indication that the expansion has not served its purpose.

CPC produces semi-finished products, including cocoa butter, liquor and powder for export, mainly to Europe.

Its confectionery factory produces chocolates, which constitutes about 10% of the company’s total capacity.

40% Drop in turnover

The company’s turnover fell to $36.4 million in 2014 compared to $60,186,136 in 2013, and this represents a decrease of 39.52%.

The company reported a loss of $16.3 million in 2014 compared to $11.8 million in 2013.

It is projected that losses may exceed $20 million in 2015 even though the figures are not out yet.

CPC’s liabilities as of September 2014 stood at $60.1 million, up from $48.4 million in the previous year.

Products and Services

The cocoa factory processes raw cocoa beans into semi-finished products – cocoa liquor, butter, natural/alkalized cake or powder – whilst the confectionery factory manufactures the Golden Tree chocolate bars, couverture, pebbles (chocolate-coated peanut), VITACO and ALLTIME drinking chocolate powder, Choco Delight (chocolate spread), Choco Bake and Royale Natural Cocoa Powder.

The CPC factories process only the choicest premium Ghana cocoa beans without any blending, probably the only factory in the world which can make such a claim.

Chocolate varieties

Its chocolate varieties include Tetteh Quarshie Bar, Kingsbite, Oranco Bar, Akuafo Bar, Portem Pride, Portem Nut, Coffeechoc, Choco-Bake, Choco Delight (chocolate spread), groundnut coated with chocolate (Pebbles), chocolate dragees and Royale Natural Cocoa Powder.

Ownership of Business

Currently, CPC, which was formed in 1981, exports about 95% of its semi-finished products to Europe and the Americas.