COCOBOD sets unbelievable new strategy on crop collateralisation for new season

The Ghana Cocoa Board (COCOBOD) has expressed firm confidence that the proportion of crop used as collateral for financing operations will stay below 60 percent for the 2026/27 cocoa season.

This commitment comes as the board restructures its financial mechanisms to fund annual cocoa purchases across the country.

The strategic shift forms part of broader efforts to reduce over-reliance on international forward sales while improving local financial sustainability.

By keeping collateral requirements under the 60 percent threshold, COCOBOD aims to retain greater flexibility in managing its yield and responding to price fluctuations in the global market.

Official projections from the board estimate crop production for the newly opened season at 650,000 tonnes.

This follows a recently concluded harvest season that generated an estimated output of approximately 771,000 tonnes.

Under the current pricing framework, the farmgate price paid to farmers reflects 71.18 percent of the gross free-on-board (FOB) realized value.

COCOBOD has also transitioned toward domestic financing arrangements, moving away from expensive offshore syndicated loans that previously dominated crop funding.

The board recently launched local cedi-denominated commercial notes and bond programs to raise capital directly from local financial institutions.

Industry stakeholders expect the controlled collateralisation target to provide the cocoa sector with much-needed stability as global commodities face ongoing price volatility.