28/08/2024
something is not right
'COCOBOD recorded a loss of GH¢78,217,000 (2017: GH¢ 176,735,000). The loss in the 2017/2018 financial year resulted mainly from the fall in the average selling price of cocoa beans to US$2,152 per tonne during the year compared to US$2,678 per tonne in 2016/2017'
Growing Concern Consideration
The Group incurred a net loss for the year ended 30 September 2019 of GH¢320.57 million (2018: GH¢78.22 million) and as of that date its current liabilities exceeded its current assets by GH¢2.29 billion (2018: GH¢ 1.52 billion)The loss for the year resulted from increased cost of operations relative to the level of cocoa beans production and the price of cocoa beans on the world market. While the net current liability position at the year end is as a result of increased short-term borrowings and the changes in existing debt profile from long term to short term due to the passage of time..
'Operating Results
The cocoa industry experienced a global economic challenge caused by the COVID-19 pandemic which affected the operational returns of COCOBOD. The result was a loss of GH¢426,315,000 as against a loss of GH¢320,565,000 recorded in 2018/19 crop year' But As of 12:47 pm on August 25, 2024, the exchange rates were as follows:
US Dollar (USD) selling price: GHC 15.75
US Dollar (USD) buying price: GHC 15.20
At the same time, the global market price for cocoa was:
$9,858.08 per tonne
When converted to Ghanaian Cedi (GHC), this translates to approximately:
GHC 147,871.20 per tonne
However, in Ghana, cocoa farmers are being paid:
GHC 33,120.00 per tonne
Please the youth in the cocoa farming industry are watching.
How do we explain this to them?
They want to understand how things work in the industry.
