Ghana’s Cocoa Sector In Crisis As Half-Year Revenues Drops By Nearly $700 Million
- Ghana's cocoa export revenue has fallen massively by nearly $700 million for the first half of 2024
- Cocoa export returns dropped sharply from $1.45 billion in the first half of 2023 to just $760 million
- Bad weather, illegal mining, etc, in cocoa-growing areas, could cause projected yields to fall below 500,000 tons
Ghana's cocoa export revenue has taken a massive hit, plummeting by nearly $700 million in the first half of 2024 amid illegal mining and smuggling challenges.
Joy News cited a Bank of Ghana report indicating that cocoa export returns dropped sharply from $1.45 billion in the first half of 2023 to just $760 million in the same period for 2024.
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This marked a 47.7% decline. Cocoa export revenues have slumped since COVID-19 hit, with half-year inflows revealing a 34% decline, leading to a $1 billion loss since 2021.
Ghana’s cocoa harvest in the 2023-2024 season was expected to be 650,000 tons to 700,000 tons versus an initial forecast of 850,000 tons.
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Joy News reported that adverse weather, disease, a shortage of fertilizer, and galamsey in cocoa-growing areas could cause projected yields to fall below 500,000 tons.
The government recently announced a 45% increase in the producer price of cocoa for the 2024/2025 crop season to curb smuggling.
The price rise follows a mid-season adjustment last year when the government raised prices from $1,335 per tonne to $2,113 per tonne in response to soaring international cocoa prices.
Former EPA boss warns of cocoa ban if illegal mining not stopped
Aside from smuggling, the cocoa sector has struggled with degradation from illegal small-scale mining.
The former Environmental Protection Agency boss, Henry Kokofu, has warned that Ghana’s cocoa beans could face an international ban over illegal mining concerns.
He explained that the increase in galamsey activities across the country poses a direct danger to the survival of the cocoa industry.
The repercussions could include the country’s economy experiencing another significant financial crisis, leading to loss of livelihoods and increased agitations.
He explained that galamsey activities near farmlands can affect the quality of beans produced on those farms and render the farms unsuitable for growing food crops. He also urged the government to fight the menace.
Government borrows money from cocoa traders
YEN.com.gh reported that COCOBOD borrowed $200 million from cocoa traders to finance bean purchases.
Anane Boateng, the president of the Ghana National Cocoa Farmers Association, expressed concerns about the issue to YEN.com.gh.
Parliament is expected to begin approval processes for the agreements on a $800 million syndicated loan.
Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh
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Source: YEN.com.gh
