Salary Cuts at COCOABOARD Won’t Fix Farmers’ 30% Income Loss – Fiifi Boafo
Salary Cuts at COCOABOARD Won’t Fix Farmers’ 30% Income Loss – Fiifi Boafo
A former official of the Ghana Cocoa Board (COCOABOARD), Mr. Fiifi Boafo, has criticized attempts to calm public anger over the cocoa price reduction by announcing salary cuts for top executives, arguing that such measures do not address the real hardship facing farmers.
“Salary Cuts Don’t Pay Farmers’ Bills”
According to him, reducing executive salaries after cutting the producer price from GH¢3,625 to GH¢2,500 per bag does not solve the structural problem confronting cocoa farmers.
“You promised the farmer GH¢6,000 per bag. Based on that promise, farmers made financial decisions,” he said.
He explained that many farmers:
- Hired farmhands at agreed wages
- Purchased fungicides and agro-chemicals
- Entered into supply contracts
- Took loans based on the expected income
“These commitments do not reduce simply because the government says it is cutting executive salaries,” he stated.
Farmers Already Locked Into Costs
The former official stressed that cocoa farming involves pre-season planning. When the Minimum Guaranteed Price (MGP) of GH¢3,625 was announced, farmers structured their operations around that figure. “A laborer will not accept less pay because the government says the cocoa price has been reduced. Suppliers will not reduce the price of chemicals. Loans must still be repaid,” he noted. He therefore described the salary reduction announcement as largely symbolic.
30% Cut for Farmers, 20% Cut for Executives
He also questioned the fairness of the proportional reductions. “Farmers’ income has been reduced by nearly 30%. Meanwhile, executives who presided over the situation are reducing their salaries by about 20%. How does that balance the scale?” he asked. He argued that executive salary cuts, while politically appealing, do not compensate farmers for the loss of over GH¢1,000 per bag.
The Core Demand: Honour the Guaranteed Price
The former official maintained that the only meaningful solution is for the government to honor the minimum guaranteed price announced at the beginning of the season. “What the government must do is pay the farmer the GH¢3,625 as it is in August. That is the minimum guaranteed price. Anything below that undermines confidence.” He warned that policy inconsistency erodes trust in pricing systems and could have long-term consequences for production, farmer morale, and cross-border trade.
Bigger Risk: Confidence in the Cocoa System
Beyond the immediate price issue, Mr. Boafo said the larger concern is credibility. “If farmers begin to believe that guaranteed prices are not guaranteed, the entire structure of cocoa purchasing and forward contracting becomes unstable.”
He reiterated that executive salary cuts do not address:
- Farmer cash flow problems
- Input cost commitments
- Loan repayments
- Smuggling incentives
While symbolic austerity at the top may ease public pressure, the former official insists that restoring farmer confidence requires honoring the promised producer price — not adjusting executive compensation.
