Ghana Cocoa Board CEO Randy Abbey: Political Clash Over Cocoa Price Reduction and Calls for Resignation

A significant political divide has emerged in Ghana regarding the leadership of the Ghana Cocoa Board (COCOBOD) following a recent adjustment in the cocoa producer price. The Majority in Parliament has firmly rejected calls from the New Patriotic Party (NPP) Minority for the removal of COCOBOD’s Chief Executive Officer, Randy Abbey. This decision comes in the wake of a government-mandated reduction in the price paid to cocoa farmers, a move necessitated by a sharp decline in international market rates. The ensuing debate highlights deeper, long-standing systemic challenges within Ghana’s most critical agricultural export sector, moving beyond individual accountability to questions of structural reform and sustainable management.

Introduction: The Core of the Political Dispute

The controversy centers on a fundamental disagreement about cause and effect. The NPP Minority, in opposition, has directly linked the recent reduction in the farm-gate price for cocoa to what they term “mismanagement” under Randy Abbey’s leadership, demanding his immediate dismissal. Conversely, the governing Majority, speaking through the Chairman of the Parliamentary Select Committee on Agriculture and Cocoa Affairs, Dr. Godfred Seidu Jassaw, has categorically dismissed these demands as “unfounded and untimely.” Dr. Jassaw argues that the sector’s difficulties are the product of “deeper structural problems” that predate Abbey’s tenure and that the CEO is, in fact, navigating the institution through a period of significant instability. This clash is not merely a partisan skirmish but a window into the complex, high-stakes management of Ghana’s cocoa economy, a pillar of national revenue and rural livelihoods.

Key Points at a Glance

• Event: Government reduced the cocoa producer price for the 2025-2026 crop season.
• NPP Minority’s Position: Demands the sacking of COCOBOD CEO Randy Abbey, citing mismanagement and failure to secure better prices for farmers.
• Majority’s Rebuttal: Parliament’s Agriculture Committee Chairman rejects the call, stating challenges are systemic and not attributable to Abbey.
• Key Argument: The Majority contends Abbey is managing existing structural weaknesses effectively and should be allowed to implement ongoing reforms.
• Price Mechanism: The new price is set at GH₵41,392 per tonne (GH₵2,587 per bag), based on 90% of the FOB value of $4,200/tonne.
• Broader Context: The dispute underscores political tensions over the stewardship of Ghana’s vital cocoa sector amid volatile global markets.

Background: The Price Reduction and Its Immediate Context

The Finance Minister’s Announcement

The catalyst for this political firestorm was an official announcement by Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, on Thursday, February 12, 2026. Dr. Forson, who also chairs the Producer Price Review Committee (PPRC), disclosed that the committee had convened to address the severe downturn in international cocoa prices. The global market price for cocoa beans had plummeted, directly impacting the revenue available to set an affordable yet sustainable price for Ghana’s farmers.

Understanding the New Producer Price Formula

To cushion farmers from the full brunt of the international price collapse, the PPRC recommended a specific formula. The committee determined that farmers would receive 90% of the achieved gross Free on Board (FOB) value. The FOB value represents the price of the commodity at the point of loading onto a ship for export, a standard international trade term. Based on current market assessments, this gross FOB value was calculated at USD 4,200 per metric tonne.

Applying the 90% ratio to this FOB value established the new producer price. Consequently, the official price for the remainder of the 2025-2026 crop season was set at GH₵41,392 per metric tonne, equivalent to GH₵2,587 per 64kg bag. This adjustment was made effective immediately, leaving farmers and industry stakeholders to digest the change mid-season.

Analysis: Deconstructing the Arguments and Underlying Realities

The NPP Minority’s Case: Demand for Accountability

The opposition NPP’s argument is straightforward and politically resonant: poor outcomes equal poor management. Their core assertions are:

1. Direct Causation: The reduction in producer price is a clear failure of COCOBOD’s leadership under Randy Abbey to secure favorable prices for farmers.
2. Evidence of Failure: They frame the price cut as undeniable proof of a “growth milestone failure” at COCOBOD.
3. Political Responsibility: As the CEO, Abbey bears ultimate responsibility for the board’s performance and must be held accountable through removal.

This line of reasoning appeals to the immediate economic pain of farmers and positions the call for a firing as a defense of their interests. It simplifies a complex global commodity chain issue into a narrative of individual leadership failure.

The Majority’s Defense: Systemic Challenges vs. Personal Scapegoating

Dr. Jassaw’s rebuttal introduces necessary complexity to the discussion, shifting the focus from personality to system:

1. Historical Precedence: He states unequivocally that the challenges confronting the cocoa sector “predate Mr. Abbey’s tenure.” This implies that issues like pricing volatility, production challenges, and institutional debt are legacy problems.
2. Structural vs. Managerial: He describes the problems as “rooted in deeper structural problems.” Potential structural issues include: global commodity price volatility (over which COCOBOD has little control), aging farmers and lack of youth participation, climate change impacts on yields, persistent cocoa diseases, high operational costs of COCOBOD, and legacy debts from previous crop financing.
3. Assessment of Current Leadership: Contrary to the failure narrative, Dr. Jassaw claims Abbey is “rather doing a lot well and a lot better to keep the ship sailing.” He credits Abbey with managing an inherently unstable system to ensure “some sustainability going forward.”
4. Call for Patience and Process: He urges critics to allow the “current management to implement these reforms” and to “observe” before passing final judgment, framing the demand for dismissal as premature “personalisation” of a systemic issue.

This argument is a defense of institutional continuity and a plea for a longer-term view on reform implementation. It suggests that removing the CEO mid-reform would be disruptive and counterproductive.

The Political and Economic Stakes

This debate is intensely political because the cocoa sector is economically existential for Ghana:

• Revenue Engine: Cocoa is Ghana’s primary agricultural export and a major source of foreign exchange earnings.
• Rural Livelihoods: An estimated 800,000 to 1 million smallholder farmers depend directly on cocoa for income, affecting millions more in dependents.
• Industrial Base: The sector supports local processing industries and related services.
• Government Budget: COCOBOD’s operations and its contributions to national development projects are tied to its financial health.

Therefore, any perception of failure or instability in COCOBOD has immediate and severe socio-economic and political ramifications. The Majority’s refusal to sack Abbey is also a refusal to admit a failure of the governing party’s own appointed management, while the Minority’s push is an attempt to capitalize on a moment of farmer distress to score political points.

Practical Advice: Navigating the Information Landscape

For farmers, industry observers, and the general public trying to make sense of this debate, consider the following:

For Cocoa Farmers

1. Understand the Price Formula: Recognize that the producer price is directly tied to the international FOB price, not a decision made in isolation in Accra. Global market forces are the primary driver.
2. Focus on Productivity: With price volatility a constant, improving yields per acre through good agricultural practices is the most reliable way to increase income, regardless of the per-bag price.
3. Engage with Official Channels: Voice concerns through recognized farmer groups and cooperatives that have formal links to COCOBOD and the PPRC for future reviews.

For Journalists and Commentators

1. Demand Data, Not Just Rhetoric: Ask both sides for specific data. What are the exact “structural weaknesses”? What specific “reforms” is Abbey implementing and what are their timelines and benchmarks?
2. Provide Historical Context: Compare the current price and the reasons for its setting with prices over the last 5-10 years. This separates cyclical downturns from potential managerial decline.
3. Explain the Mechanics: Dedicate time to explaining how the FOB price, exchange rates, and the 90% ratio work. An informed public is less susceptible to oversimplified political blame games.

For Policymakers and Civil Society

1. Push for Transparency: Advocate for the full, public report of the PPRC’s deliberations, including the specific international price benchmarks used and the sensitivity analysis for different scenarios.
2. Long-Term Diversification: The debate should catalyze discussion on reducing Ghana’s over-reliance on raw cocoa bean exports by boosting local processing capacity, which can capture more value and insulate farmers somewhat from raw bean price swings.
3. Strengthen Oversight, Not Just Scapegoating: Parliament’s oversight role, as promised by Dr. Jassaw, is crucial. This should focus on auditing COCOBOD’s operational efficiency, debt management, and reform progress through structured, evidence-based reviews rather than reactive political demands.

FAQ: Common Questions About the Ghana Cocoa Price and COCOBOD

What exactly is the “producer price” and who sets it?

The producer price is the fixed price paid by COCOBOD to licensed cocoa buying companies (LBCs), which in turn pay farmers. It is set by the Producer Price Review Committee (PPRC), chaired by the Minister of Finance. The formula is designed to pass on a high percentage (currently 90%) of the international FOB price to farmers, after accounting for costs like grading, handling, and internal transportation.

Why did the price go down if the government wants to help farmers?

The price decrease is a direct, mechanical result of a significant drop in the global market price for cocoa. The PPRC’s role is to calculate a sustainable price based on the *actual* revenue COCOBOD can secure from exports. If the international price falls sharply, the calculated producer price must fall accordingly to ensure COCOBOD remains solvent and can continue to finance the next crop. The government’s action was to set the highest possible price *within* this new, lower revenue reality.

Is Randy Abbey responsible for the fall in international cocoa prices?

No. International cocoa prices are set on global commodity exchanges (like ICE Futures) and are influenced by worldwide supply and demand dynamics, weather in major producing regions (like West Africa and Southeast Asia), stock levels, currency fluctuations, and speculative trading. No single national board or CEO controls these global forces.

What are the “structural problems” in Ghana’s cocoa sector?

These are long-standing, complex issues that include: aging farmer population with low youth involvement; low farm productivity due to limited access to inputs and modern farming techniques; vulnerability to climate change and diseases like Swollen Shoot; high cost of production and logistics; the financial burden of COCOBOD’s historical debt from crop financing; and over-reliance on a single export commodity (raw beans) rather than diversified value-added products.

What reforms is Randy Abbey implementing?

While specific, current initiatives would require a statement from COCOBOD, past and ongoing reform agendas typically focus on: improving operational efficiency to reduce costs; enhancing transparency in the purchasing system; pursuing policies to boost local processing (the “Ghana Beyond Aid” cocoa processing goal); implementing digital systems for traceability and payments; and restructuring debt to achieve long-term financial sustainability.

What is Parliament’s oversight role regarding COCOBOD?

As stated by Dr. Jassaw, Parliament, through its Committees (especially the Agriculture and Cocoa Affairs Committee), has the constitutional duty to scrutinize the operations, budgets, and performance of COCOBOD. This includes summoning management for hearings, reviewing annual reports, auditing expenditures, and evaluating the effectiveness of policies and reforms. Their oversight is meant to be continuous and evidence-based.

Conclusion: Beyond the Call for a Head

The Majority’s rejection of the NPP’s call for Randy Abbey’s removal is more than a simple partisan shield. It is an assertion that Ghana’s cocoa crisis requires systemic diagnosis and treatment, not the scapegoating of an individual. The Majority’s argument accepts that the current price reduction is an unfortunate but mathematically inevitable outcome of a global price crash. Their stance suggests that the appropriate response is rigorous parliamentary oversight of COCOBOD’s management of this crisis and its long-term reform agenda, not a disruptive leadership change that would likely stall any ongoing progress.

However, this defense places a heavy burden on COCOBOD’s management under Abbey to visibly and effectively address those “structural deficiencies.” The promise of future “sustainability” and “growth” must eventually translate into tangible outcomes for farmers, such as more stable incomes, higher yields, and a reduced frequency of severe price adjustments. The political colors of this debate may fade, but the fundamental questions remain: Can Ghana’s cocoa sector be restructured to be more resilient? And can COCOBOD, as currently constituted, lead that transformation? The answers will determine the livelihoods of a million farmers and a cornerstone of the national economy, long after the current political rhetoric subsides.

Sources and Verifiable Information

The information in this article is derived from and verifiable through the following sources referenced in the original report:

• Statements made by Dr. Godfred Seidu Jassaw, Chairman of the Parliamentary Select Committee on Agriculture and Cocoa Affairs, during a parliamentary session or press engagement on or around February 12, 2026.
• Official announcement by Dr. Cassiel Ato Forson, Minister of Finance and Chairman of the Producer Price Review Committee (PPRC), delivered during a press briefing on Thursday, February 12, 2026.
• The official Producer Price for the 2025-2026 crop season as set