Dr Randy Abbey is the Acting CEO of COCOBOD
Dr Randy Abbey, Acting CEO of COCOBOD, has warned against the potential collapse of Licensed Buying Companies (LBCs), particularly the indigenous ones.
According to him, the absence of a syndicated loan for the 2025/2026 season has resulted in no “seed fund” being allocated to LBCs, which is crucial for purchasing cocoa beans from farmers.
During an interview on JoyNews’ PM Express, he stated that the situation is causing significant distress for local operators who are unable to function without the seed money.
He noted that while forgoing the syndicated loan might save COCOBOD substantial financing costs, the consequences for local players are severe.
Abbey added that he has engaged the Central Bank, proposing that 2% or 3% of the Cash Reserve Ratio be allocated to support indigenous LBCs, specifically for cocoa purchases.
“What I then told the Central Bank when we engaged them was that, look, you have the Cash Reserve Ratio, where all the banks put 25% of their deposits at the Central Bank. This is idle, not doing anything,” he stated.
He remains hopeful for a positive response but warns that time is running out, and if the current financing model continues, many LBCs might collapse.
DR/AE
