Accra: Amid ongoing challenges in Ghana's cocoa sector, the Ghana Cocoa Board (COCOBOD) has taken some bold steps, including cutting management salaries and adjusting cocoa prices. Economist Professor Peter Quartey has welcomed these measures but insists that far more needs to be done to place COCOBOD on a solid financial footing.
According to Ghana Web, Professor Quartey emphasized the need for COCOBOD to undergo structural reforms, particularly in staff rationalisation. He advised against mass layoffs, noting that dismissing workers outright would exacerbate unemployment issues. Instead, he proposed that redundant staff could be redeployed to other ministries, departments, and agencies where their skills would be better utilised.
Professor Quartey commented on the significance of COCOBOD's recent measures: "I think the signalling effect is good. You are signalling to farmers, to Ghanaians, to everybody, to the global community, that as managers of the cocoa board, you want to take part of the responsibility to address the problem." However, he also questioned the specifics of the financial impact, asking how much money these cuts would save and how far they would go in resolving COCOBOD's financial issues.
COCOBOD announced last week that its Board of Directors will forgo sitting allowances for the remainder of the 2025/26 cocoa season. Additionally, executive management has agreed to a 20% pay cut, while senior staff salaries have been reduced by 10%. These measures are expected to save the organisation approximately GHS5 million each month.
Professor Quartey acknowledged the symbolic importance of these cuts, describing them as a signal of shared sacrifice to farmers, Ghanaians, and the international community. However, he questioned the scale of the savings, seeking clarity on how these reductions would address the larger financial challenges COCOBOD faces.
Furthermore, the government has revised the producer price of cocoa to GHS41,392 per tonne (GHS2,587 per bag) for the remainder of the 2025/26 crop season. COCOBOD officials explained that this adjustment is intended to protect farmers amid declining global cocoa prices.