Alan Kyerematen identifies discrepancies that shortchange cocoa farmers

In his bid to transform Ghana’s economy, Alan Kyerematen, the presidential candidate of the Movement for Change, has announced his commitment to abolishing the longstanding cocoa syndicated loan scheme, which has relied on borrowing in dollars to pay farmers in cedis.

He explained that this system has directly harmed farmers due to currency depreciation. “The current system forces the government to borrow about $2 billion annually under the guise of helping cocoa farmers, yet pays them in cedis. This discrepancy shortchanges farmers as our currency loses value, causing their earnings to be used to service growing debts,” he said.

To replace this system which he described as flawed, Mr. Kyerematen outlined an innovative approach: borrowing locally in Cedis to finance cocoa purchases. “By financing our cocoa purchases with local cedi-denominated funds, we ensure that when our cocoa is sold internationally, both the country and farmers gain full value. No more will our farmers’ hard work serve only to pay off foreign loans,” he assured.

He said this while speaking to a gathering of chiefs and local communities during his Caravan Campaign Tour.

Pointing to the current global price of cocoa, which stands at a record $7,960 per ton, Alan criticized the government’s failure to translate these high prices into fair earnings for Ghanaian farmers. “With prices this high, it’s unforgivable that our farmers still struggle with inadequate compensation. The government is not paying them nearly what they deserve,” he stated, adding that his administration would prioritize value addition to cocoa exports.

Under his Great Transformational Plan, Mr. Kyerematen pledged to process at least 70% of Ghana’s cocoa locally, converting raw cocoa into finished products like chocolate to increase revenue. “The real value of cocoa lies in what we create from it. If we export finished products, our farmers will finally see the prosperity they deserve,” he explained, emphasizing that Ghana’s status as the world’s second-largest cocoa producer should be leveraged for greater economic gains.

Another key area he addressed was cocoa pollination. He noted that the current pollination costs are a barrier for most farmers, which has reduced yields significantly. “Our cocoa farmers deserve access to free pollination services to boost their yield. Under my leadership, pollination will be free, allowing farmers to cultivate and harvest more efficiently,” he promised, eliciting cheers from the audience.

Mr. Kyerematen also laid out plans to deepen private sector participation in the cocoa sector, including offloading shares of COCOBOD on the Ghana Stock Exchange. He proposed a share option scheme that would give farmers a stake in the cocoa market, empowering them to reap greater financial rewards from their hard work. “It’s time for our farmers to have ownership in the industry they sustain,” he declared.

In closing, Kyerematen called for unity and support for his vision, affirming that his policies would “finally honor the hard work of our cocoa farmers” and that Ghana’s economy, and especially the lives of cocoa farmers, would see unprecedented improvement under his administration. “This is about giving our cocoa farmers the prosperity they deserve,” he concluded, vowing that his Great Transformational Plan would not only secure a fair market for Ghana’s cocoa but also ensure a sustainable future for all farmers.

The post Alan Kyerematen identifies discrepancies that shortchange cocoa farmers first appeared on 3News.

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