Economy

Cocoa farmers file grievance with COCOBOD, urging action on critical issues

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A group of cocoa farmers in Ghana has officially submitted a grievance to the Ghana Cocoa Board (COCOBOD), urging the regulator to take immediate action on longstanding concerns, including deforestation, child labor, hazardous pesticide use, and, notably, delays in the payment of living allowances.

This complaint is a test of the grievance mechanism COCOBOD established in 2019 as a condition for receiving a $600 million loan from the African Development Bank. The 30 farmers allege that, despite COCOBOD’s mandate, the cocoa industry has faced these persistent challenges for over a decade, with limited oversight and support for farmers.

“Improving the welfare of cocoa farmers should be at the forefront of COCOBOD’s responsibilities,” said Phidelia Gameli, one of the farmers involved, in an interview with Citi Business News.

The farmers’ collective action is backed by the University of Ghana School of Law, non-profit Civic Response, and the U.S.-based Corporate Accountability Lab. Together, they are working to improve accountability within COCOBOD and push for reforms in Ghana’s cocoa sector. In their complaint, the farmers argue that environmental degradation, dangerous pesticide use, child labor, and limited income from cocoa are compounded by opaque supply chains and low prices, hindering sustainable farming and community well-being.

Despite initiatives by COCOBOD and other agencies to curb cocoa smuggling, Ghana reportedly lost 120,000 metric tons of cocoa beans to smuggling in 2022-2023, driven largely by more attractive prices in neighboring countries. The rising smuggling trend poses a significant threat to the sector, which remains a cornerstone of Ghana’s economy.

In 2018, COCOBOD introduced an Environmental and Social Management System (ESMS) designed to manage risks across its operations, including a grievance and redress mechanism. This ESMS applies to all COCOBOD divisions, contractors, service providers, and activities within the cocoa sector, aiming to address environmental, social, health, and safety risks.

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