Ghana Cocoa Board
Encyclopedia
The Ghana Cocoa Board is a Ghana
ian government-controlled institution that fixes
the buying price for cocoa in Ghana, the world's second largest producer of the commodity. The price-fixing is seen as an attempt to protect farmers from the volatile prices on the world market
. While an overwhelming majority of cocoa is covered by the Cocobod, some special types of cocoa are not included, such as some fair trade
, organic
and high-quality beans. Besides the price-fixing the organisation sells higher quality hybrid seeds, and does some research on cocoa plant related diseases.
Between 1947 and 1979 the instititution was known as the Cocoa Marketing Board.
, a colony of the British Empire
equal to contemporary Ghana, refused to continue selling cocoa at the low prices set by European merchants and decided to withhold cocoa from the market. The strike went on for 8 months, until the British government acted by setting up the Nowell Commission of Enquiry to investigate the issue. The Nowell Commission report advised the government to assist cocoa farmers by establishing a Marketing Board.
and was dissolved in 1946.
. In addition, a new payment system known as the Akuafo Check System was introduced in 1982 at the point of purchase of dried beans.
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
ian government-controlled institution that fixes
Price fixing
Price fixing is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand...
the buying price for cocoa in Ghana, the world's second largest producer of the commodity. The price-fixing is seen as an attempt to protect farmers from the volatile prices on the world market
World economy
The world economy, or global economy, generally refers to the economy, which is based on economies of all of the world's countries, national economies. Also global economy can be seen as the economy of global society and national economies – as economies of local societies, making the global one....
. While an overwhelming majority of cocoa is covered by the Cocobod, some special types of cocoa are not included, such as some fair trade
Fair trade
Fair trade is an organized social movement and market-based approach that aims to help producers in developing countries make better trading conditions and promote sustainability. The movement advocates the payment of a higher price to producers as well as higher social and environmental standards...
, organic
Organic food
Organic foods are foods that are produced using methods that do not involve modern synthetic inputs such as synthetic pesticides and chemical fertilizers, do not contain genetically modified organisms, and are not processed using irradiation, industrial solvents, or chemical food additives.For the...
and high-quality beans. Besides the price-fixing the organisation sells higher quality hybrid seeds, and does some research on cocoa plant related diseases.
Between 1947 and 1979 the instititution was known as the Cocoa Marketing Board.
Background
In 1937, farmers in Gold CoastGold Coast (British colony)
The Gold Coast was a British colony on the Gulf of Guinea in west Africa that became the independent nation of Ghana in 1957.-Overview:The first Europeans to arrive at the coast were the Portuguese in 1471. They encountered a variety of African kingdoms, some of which controlled substantial...
, a colony of the British Empire
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...
equal to contemporary Ghana, refused to continue selling cocoa at the low prices set by European merchants and decided to withhold cocoa from the market. The strike went on for 8 months, until the British government acted by setting up the Nowell Commission of Enquiry to investigate the issue. The Nowell Commission report advised the government to assist cocoa farmers by establishing a Marketing Board.
West African Produce Control Board (1940-1946)
In 1940, the government established the West African Produce Control Board to purchase cocoa under guaranteed prices from all West African countries. It operated throughout World War IIWorld War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
and was dissolved in 1946.
Cocoa Marketing Board (1947-1979)
The Ghana Marketing Board was established by ordinance in 1947 with the sum of 27 million Ghanaian Cedi as its initial working capital. In 1979, this Board was dissolved and reconstituted as the Ghana Cocoa Board.Ghana Cocoa Board (1979-)
In 1984 Cocobod underwent institutional reform aimed at subjecting the cocoa sector to market forces. Cocobod's role was reduced, and 40 percent of its staff, or at least 35,000 employees, were dismissed. Furthermore, the government shifted responsibility for crop transport to the private sector. Subsidies for production inputs (fertilizers, insecticides, fungicides, and equipment) were removed, and there was a measure of privatization of the processing sector through at least one joint ventureJoint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
. In addition, a new payment system known as the Akuafo Check System was introduced in 1982 at the point of purchase of dried beans.
Objectives
Cocobod's self-declared goals are:- Encourage the production of cocoa, coffeeCoffeeCoffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
and sheanut - Initiate programmes aimed at controlling pests and diseases of cocoa, coffee and sheanut.
- Undertake and encourage the processing of cocoa, coffee, sheanut and cocoa waste with the aim of adding value for export and local consumption.
- Undertake, promote and encourage scientific research aimed at improving the quality of cocoa, coffee, sheanut and other tropical crops.
- Regulate the internal marketing of cocoa, coffee and sheanut
- Secure the most favourable arrangements for the purchase, grading and sealing, certification, sale and export of cocoa, coffee and sheanut
- Purchase, market and export cocoa and cocoa products produced in Ghana which is graded under the Cocoa Industry (Regulations) (Consolidation) Decree, 1968 NLCD 278, or any other enactment as suitable for export
- Assist in the development of the cocoa, coffee and sheanut industries of Ghana.