American Prof, Steve Hanke accuses COCOBOD of ripping farmers off, describes it as a corrupt institution

Steve Hanke, an American economist and professor of applied economics at Johns Hopkins University, has accused the Ghana Cocoa Board (COCOBOD) of cheating farmers.

He noted that COCOBOD pays farmers only one-third of the market price for cocoa.

In a post on his X page, Prof Hanke said “The Ghana Cocoa Board rips off Ghanaian farmers. The board pays farmers only one-third of the market price for cocoa. The Cocoa Board is a typical corrupt Ghanaian institution.”

His comments come at a time when the new Chief Executive of COCOBOD, Dr. Randy Abbey recently reaffirmed the commitment of the government to support local cocoa processing and consumption as a key price-guard strategy.  

Dr. Randy Abbey expressed worry that though the country has an installed domestic processing capacity of 504,780 tonnes, existing processing companies were operating below 50% of their capacity, a development he noted has resulted in low domestic consumption and the failure to secure the much-needed benefit from the multi-billion dollar global chocolate industry.

He further observed that despite the increase in per capita consumption of cocoa in Ghana from 0.5kg to 1kg, the achievement can not be compared to the rate of consumption in non-cocoa-producing countries in Europe and the Americas.

“Ghana has long been recognized as one of the world’s leading producers of cocoa, yet we are yet to reap the full benefits of this beloved crop in terms of domestic consumption,” he said. He  added that by increasing domestic consumption, the country would not only reduce its over-reliance on global markets but also provide our cherished cocoa farmers with a stable and reliable income.

Stressing the need for deliberate policies and programmes on the part of the government to help address the unfortunate situation, Dr. Randy Abbey further observed that improving local capacity in processing and consumption will help stimulate economic growth by creating opportunities for cocoa-based industries such as chocolate production, beverages, cosmetics, and pharmaceutical companies.

These remarks were contained in a speech read on his behalf by the Deputy Director in charge of Research & Monitoring, Mr. Michael  Elow Amoah, at the official launch of the 2025 National Chocolate Week Celebrations.

The acting COCOBOD CEO pledged that the government would continue to play an active role by incentivising local domestic cocoa processing, supporting small-scale cocoa processors, and fostering public-private partnerships to improve capacity utilization.

“I am pleased to inform you that His Excellency, John Dramani Mahama, the President of the Republic of Ghana, has directed me to put in place measures that will ensure that Ghana increases its export of processed cocoa products at the expense of raw cocoa beans,” he said.

The post American Prof, Steve Hanke accuses COCOBOD of ripping farmers off, describes it as a corrupt institution first appeared on 3News.

Read Full Story