COCOBOD spent over US$140M on unused jute sacks – acting CEO Randy Abbey 

GHANA – The Ghana Cocoa Board (COCOBOD) spent over US$140 million on jute sacks between 2022 and 2024 despite already having substantial stockpiles, according to the newly appointed Acting Chief Executive Officer, Randy Abbey. 

Addressing the issue, Dr. Abbey revealed that COCOBOD continued importing large quantities of jute sacks over a three-year period, even though the institution already had tens of thousands of bales in storage.  

He attributed part of COCOBOD’s deepening financial troubles to these procurement decisions. 

In the 2021/2022 season, COCOBOD reportedly had over 94,000 bales of jute sacks in storage. Despite this, an additional 75,000 bales were ordered at a cost of more than US$45 million.  

Each bale contains 300 sacks, and the projected cocoa production determines the quantity required. Abbey noted that just over 50,000 bales were used that year, making the previous stock sufficient. 

The pattern continued the following year, with another 75,000 bales imported despite an existing stockpile of 111,000 bales. Out of the newly ordered bales, only 17,000 were cleared, leaving the rest at the Tema Port. 

In the third year, COCOBOD spent more than US$30 million on importing an additional 56,000 bales, with fewer than 1,000 bales cleared. Abbey further disclosed a US$48 million transaction involving irrevocable letters of credit for another 80,000 bales in December 2024, despite the presence of 70,000 bales in storage and 110,000 bales still uncleared. 

“With irrevocable letters of credit, once the shipping documents are presented, the funds are released automatically—even if we do not need the sacks,” he stated. 

Abbey described the situation as financially harmful and confirmed COCOBOD’s debt currently stands at nearly ¢33 billion, with some liabilities dating back over four years.  

He added that such financial mismanagement has hindered cocoa farmers from benefiting fully from rising global cocoa prices. 

COCOBOD also reportedly owes US$400 million to agrochemical suppliers, with some inputs paid for yet to be delivered.  

Abbey emphasized that steps are being taken to enhance procurement and operational procedures at the district level. 

He concluded that efforts are underway to reduce waste and channel resources toward benefiting cocoa farmers.  

The 2025/2026 cocoa season is set to begin in August, one month earlier than usual, with new producer prices to be announced before the season opens. 

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