By Cecil MENSAH
Cargill Kokoo Sourcing Limited, a Licensed Buying Company (LBC) and subsidiary of Cargill Cocoa and Chocolate, has introduced the use of mobile money for the payment of cocoa farmers across the country.
The company explained that farmers who are part of the cooperatives will now be paid through the MTN and Tigo money platforms.
Farmers will now deliver their Cocoa to community warehouses where their beans will be digitally weighed in front of them, assigned a fully traceable bar code and funds will then be transferred straight to the farmer’s phone or e-wallet using e-money through partnerships with E-Zwich.
The revolutionary move to mobile wired money in Ghana adds assurance for the farmers, improves their ability to trade more effectively and eradicates all risks associated with cash payments.
Mr. Harold Poelma, president of Cargill Cocoa and Chocolate announced this at the launch of Cargill Kokoo Sourcing Limited in Accra last week.
According to him, the establishment of the LBC in Ghana will boost the economy.
He said Cargill’s innovation of high technology purchasing model is built on the principles of sustainability and full traceability in Ghana.
According to him, the new LBC has been fully operational since November 2016, and allows Cargill to directly source cocoa from certified farmers in Ghana for the first time.
He maintained that so far over 25,000 farmers have been registered as part of cooperatives, of which 9,000 are actively pursuing selling beans through Cargill’s LBC network.
“Cargill already sources directly from farmers and farmer organizations in other countries.”
Moving to this model in Ghana means that the company will be better positioned to efficiently implement the Cargill Cocoa Promise at scale and better serve its customers.
Cargill’s new bar code system means the company can now trace each individual bag of Ghanaian cocoa beans sourced through the Cargill LBC to the individual farm, creating a fully traceable supply chain down to farmer level for the first time in Ghana.
Speaking about the importance of working with partners to introduce this new payment system into rural areas in Ghana, Lionel Soulard, Managing Director, West-Africa Cargill Cocoa & Chocolate, said “Never before has it been more critical for cocoa farmers in Ghana to be the master of their own destiny and improve their own livelihoods.
“We strongly believe that this way of doing business is the future for cocoa farmers in Ghana. Mobile money is the first step towards improving incomes for farmers, as we build the infrastructure and capabilities for a more efficient and effective supply chain.
“Our aim is to create an enabling environment for smallholder finance for the future, resulting in better entrepreneurial spirit already noticeable at the farmer level,” continued Soulard.
Mr. Joseph Boahen Aidoo, Chief Executive Officer (CEO) of COCOBOD said, “We are pleased to have worked with Cargill on such an innovative project, and this shows our continued partnership with Cargill goes from strength to strength.
“We see this model as the future of cocoa sourcing in our country.
“COCOBOD will continue to work with all stakeholders in the sector to support the livelihoods of the farmers to bring about efficiency in production and at the same time environmental sustainability and transparency in the sector.”
