LACRA Calls For Action Against Cocoa Smuggling Amid Increased Royalty

By Fanta L. Keita

MONROVIA, Oct. 22 (LINA) – The Liberia Agriculture Commodity Regulatory Authority (LACRA) has called for stricter measures to curb the illegal exportation of cocoa.

LACRA's Director General, Christopher D. Sankolo, urged the Buchanan Port Manager Jonathan Kaipay, to confiscate any cocoa being smuggled through the port and arrest those involved in these illegal activities.

The appeal was made on Tuesday, October 17, 2024, during a visit by LACRA’s Director General to Port of Buchanan in Grand Bassa County. 

The visit came on the heels of LACRA's recent decision to increase the royalty on cocoa exports, a move intended to boost the institution's capacity to decentralize its operations and enhance production.

It can be recalled that LACRA recently increased the export royalty on cocoa from US$10 to US$100 per shipment. The change was communicated to cocoa exporters on October 8, 2024, but sparked concerns within the industry. 

During discussions with the Buchanan Port Manager, Sankolo explained that the decision was taken by LACRA's board to address critical financial needs, noting that the agency has been unable to fully implement its mandate, which includes promoting cocoa production by establishing nurseries and distributing seedlings, due to limited funds.

“The increase in royalty will help us generate the necessary revenue to establish cocoa nurseries, supply seedlings to farmers, and train staff to be stationed at various border points to monitor export activities,” he stated.

However, the decision has also led to a rise in cocoa smuggling as some traders seek to evade the fees by using illegal routes out of the country. 

Sankolo expressed concern over the surge in smuggling activities and called for collaboration with port authorities to prevent the loss of vital revenue.

He added that in the short term, LACRA plans to launch educational “gold-digging” including radio promotions and billboards aimed at informing farmers about the processes required to produce premium cocoa beans and the benefits of complying with regulations.

In response, Buchanan Port Manager Kaipay assured the LACRA boss of the port's cooperation, noting that no illegal cocoa shipments have been detected at the port so far.  He emphasized that only oil palm shipments, primarily from Equatorial Palm Oil and Golden Veroleum, have passed through the port legally. Nevertheless, Kaipay pledged to remain vigilant and collaborate with LACRA to ensure compliance.

Kaipay, who is also a cocoa farmer, called on LACRA to deploy staff to Buchanan to assist in monitoring export activities and prevent illegal trade and expressed confidence that joint efforts would result in better regulation and a boost in the sector's performance.