Ghana’s cocoa sector is facing a significant setback in the 2023/24 season, with an expected 40% drop in cocoa output compared to the target of 820,000 metric tons.
The decline is attributed to adverse weather conditions, smuggling, illegal gold mining, and the prevalence of the cocoa swollen shoot disease.
A source from Ghana’s cocoa regulator, COCOBOD, according to JoyNews, informed Reuters that strong seasonal winds and inadequate rainfall have worsened the situation, with the projected output for the season now around 500,000 tons. The source expressed concern, stating that immediate human intervention cannot remedy the decline.
In the previous season (2022/23), COCOBOD reported a loss of approximately 150,000 tons due to smuggling and illegal gold mining. The cocoa swollen shoot virus also devastated about 500,000 hectares of cocoa farmlands.
Efforts are underway to address these challenges, including farm rehabilitation projects, the onset of the rainy season, and collaboration with security agencies to curb smuggling.
Despite the current challenges, there is optimism about Ghana’s potential for production recovery. However, COCOBOD was not available for comment.
The decline in cocoa production from both Ghana and Cote d’Ivoire has led to global cocoa prices reaching record highs. Traders are experiencing increased demand and pricing volatility, with London cocoa futures exceeding £5,000 and New York cocoa surpassing $6,000.
The rise in cocoa prices is starting to impact retail markets, with chocolate manufacturers like Hershey expecting a slowdown in consumer demand due to higher costs.
Samuel Adimado, president of Ghana’s cocoa buyers group, described the production forecast as ‘shattering,’ noting that member firms are adjusting their operations to cope with the challenges.
Highlighting the alarming trend, the source emphasized that the higher global cocoa prices have incentivized smuggling, potentially leading to even greater losses in the current season.