The Cocoa Industry And Ghana's Economy
Strategy and policy in production and marketing
Poku Adaa
On the eve of the ministerial meeting of the Cocoa Producers Alliance held in Accra recently, Mr U.K. Hackman, former Ghanaian Executive Director of the International Cocoa Organisation, published a paper in Accra entitled "Meticulous Cocoa Policy Needed". Below POKU ADAA provides salient features of his paper.Mr. U.K. Hackman asserts that even though in the past few years, Ivory Coast and Brazil have overtaken Ghana as the leading cocoa producer in the world, it would be suicidal for Ghana to try and catch up to restore her past honour and leadership in production. He argues that any sudden sharp increases in the supply of cocoa on the world market will inevitably be followed by a sudden drop in the price of cocoa by at least 10% and in a situation like that Ghana will suffer quite considerably. On this basis, there is a need for a re-assessment and re- appraisal of current national efforts at rehabilitation of the cocoa industry.
Mr Hackman cautions against the apparent friendliness of the World Bank and other international agencies in their willingness to offer liberal loans to stimulate cocoa production as this is ultimately meant to stir up competition among producers to the cheap benefit of consuming nations and manufacturing cartels. He contends that it is only by asserting our right to determine the goals we aim to achieve by the current re-habilitation exercise that we can prevent outside interests from determining the direction of our cocoa policy.
MANIPULATION
He emphasises the need for Ghana to diversify from cocoa production as a price. matter of policy in order to reduce the manipulation of our economy by foreign interests. Cocoa policy, Mr Hackman asserts, on a worldwide basis is a tightrope which requires the need to prevent the collapse of production and at the same time requires a measured expansion in order not to knock prices out of control.He recalled the disaster that was wreaked on our economy in the 1960s due to over production of cocoa and stressed the need for production policies to create a healthy market
The lack of unity and harmony among producing countries which was the bone of discussion at the Accra Ministerial Meeting was elaborated by Mr Hackman. The Ivory Coast's aggressive policy of channelling all her resources into cocoa production creates the tendency of Ghana's cocoa to be easily smuggled out. Similarly, he says, the expansionist policy of Brazil in cocoa production and the devaluation of her currency makes her a more attractive trading partner for most consuming countries."
In such a situation, Ghana which depends solely on cocoa faces the imminent threat to her economy. Mr Hackman therefore calls for strong diplomatic efforts between her co- producers to allow Ghana a small measured expansion which will set the target and direction for her rehabilitation exercise. And that exercise, says Mr Hackman, must be achieved at the minimum cost which can come about through the use of high yielding seedlings instead of the Tetteh Quarshie varieties.
AMENITIES
More consistent encouragement ought to be given to areas with existing infrastructural amenities such as extension services, supply of inputs and reliable road network to reduce the unit cost of production. Large scale cocoa-only farms should be discour- aged in favour of farms intercropped with fruit trees, coconuts, etc. to reduce the cost of production per hectare.Mr Hackman stressed that while there should be no attempt to dis- courage the production of food crops a sensible balance in relationship between these crops and cocoa have to be established to ensure that there is no large-scale abandonment of cocoa in favour of food crops particularly where this might work to the disad- vantage of the country.
Finally, he touched on the sensitive topic of artificial substitutes in the cocoa manufacturing industry which pose a terrible threat to the cocoa production. The only way to fight substitutes, he revealed, is to produce good quality seedlings and to produce high yielding varieties at minimal cost and that, says Mr Hackman should be the cornerstone of our cocoa policies.
Mr Hackman concluded by saying that if Ghana wants to achieve a satisfactory policy in the world cocoa economy, its policy must derive its roots from a correct appraisal of its role in the world economy. It is on this basis that a viable and nationalist cocoa strategy can be pursued. He added that our present situation in the world cocoa economy suggests we follow a policy which will in the long run strengthen and not weaken our position as a cocoa producer.
