Ghana losing 15,000 metric tonnes of cocoa due to poor warehousing

Ghana, the world’s second largest producer of cocoa is at the moment losing about 15,000 metric tonnes of cocoa due to poor warehouse management by the Ghana Cocoa Marketing Board (COCOBOD).

Investigations carried by the Business and Financial Times (B&FT) has found that over 400 vehicles carrying approximately 15,000 metric tonnes of cocoa beans are at a standstill at Takoradi and Tema Take-Over-Points, due to inefficient warehouse management by the COCOBOD in offloading the beans.

The investigations indicated that some of the vehicles owned by Licenced Buying Companies (LBCs) in the country have been at the Take-Over-Points for the past four weeks. Each vehicle carries about 600 bags of cocoa beans. Approximately 16 bags of 64 kilogrammes of cocoa bags equal one tone.

The B&FT learned that in terms of financial cost, the companies incur a cost of GH¢1.70 a tonne per day on one vehicle standing at the two Take-Over-Points – which translates to GH¢25,500 per day for 400 vehicles at two Take-Over Points.

The non-evacuation of the sealed stocks has also affected subsequent grading and sealing of unsealed stocks at the respective companies’ societies/depots.

With the rainy season already here, the preservation of the stocks at the societies/depots and take-over centres cannot be guaranteed.

“COCOBOD does not have enough storage facilities at the country’s ports to achieve one million tonnes of cocoa by 2012/2013 season,” said two officials of the companies who asked not to be named.

“It doesn’t make much sense that all our efforts be poured into producing so much and not match that with increased warehousing capacity,” the officials added.

Ghana has set itself the target of purchasing at least one million tonnes of cocoa per year by end of the 2012/13 season through increasing fertiliser use, enhancing husbandry and disease control, and ensuring that farmers are well-paid for their produce.

Meanwhile, President John Atta Mills is expected to launch the rehabilitation of ageing cocoa farms campaign through out the country this year. The national campaign is to increase and sustain production in the long-term.

COCOBOD has twice revised upward its target for cocoa purchases this year. It estimates that the 13-week light crop, which is due to start on June 3, will range between 70,000 and 100,000 tonnes.

“Another problem area is getting fertiliser to the farmers at the right time. We all know that the rains started about one month ago and fertiliser is yet to reach all the corners of the cocoa regions,” the official stated.

“It could take as long as three weeks for fertiliser from Tema to reach a farmer in a place in the northern-most part of the Western Region where the bulk of Ghana’s cocoa is produced.”

The officials disclosed that the 1.5 million bags of fertiliser target is not likely to be met – and that some farmers might not get any fertiliser at all.

“The reason, we might guess, could be budgetary constraints. When that happens, those farmers are likely to be frustrated and might lose interest in future programmes.”

Source: B&FT

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