The market rewards and punishes

Former Member of Parliament and Minister, Inusah Fuseini, says the prevailing COCOBOD issue is tied to forward sales and fluctuating global cocoa prices.

He pointed out that if cocoa prices had dropped below 2,600 dollars per tonne in subsequent years, the narrative would be very different, shedding light on how the business market rewards and punishes.

“We would have benefited,” he said on JoyNews’ Newsfile monitored by MyNewsGh.

“If prices had fallen, they would say they were visionary, that they saw it coming and sold at the right time.”

But prices did not fall. They rose. That shift, he explained, turned what might have been praised as foresight into a financial burden.

“The failure to supply was not because buyers refused to take it, but because you couldn’t supply,” he emphasized.

Fuseini argues that this chain of events is central to understanding today’s financial strain.

The inability to meet delivery targets, in his view, directly affected revenue streams and market credibility.

He suggests that had the 333,000 tonnes been delivered as required, the current situation might look very different.

He also addressed criticism of the present management, noting that decisions not to enter certain forward contracts were deliberate.

“Now we hold the present management responsible for not entering into forward contracts in a manner that brought revenue,” he said, describing such choices as strategic rather than accidental.

“The reduction of the price of cocoa reflects the situation at COCOBOD and also world market prices,” he concluded.