TIG Post

Tag: cocoa

  • New US import duty threatens Ghana’s processed cocoa gains

    New US import duty threatens Ghana’s processed cocoa gains

    Ghanaian exporters are facing fresh uncertainty as a new 10% import tariff imposed by the United States threatens to disrupt the country’s non-traditional exports.

    The tariff, unveiled by US President Donald Trump, has triggered anxiety among local producers and exporters who are worried about losing market share, struggling to maintain competitive pricing, and seeing reduced revenue from trade with the US.

    According to the Ministry of Trade, Agribusiness and Industry, the tariff will hit several vital export sectors. These include cocoa derivatives, garments and textiles, cashew, shea butter, and a range of agricultural products.

    As one of the top cocoa-producing nations, Ghana has been working to expand exports of processed cocoa products. Officials fear the new US policy could undermine those efforts.

    Garments and textiles are also expected to be affected. The Ministry notes that despite growth under initiatives like the African Growth and Opportunity Act (AGOA), which allows duty-free access to the US market, the tariff could weaken the cost advantage enjoyed by Ghanaian manufacturers, making it harder for them to compete with low-cost producers worldwide.

    The agricultural sector is no exception. Products such as cashew, shea butter, fruits, vegetables, and yam—among Ghana’s most successful non-traditional exports—are now subject to the new import tax.

    Exporters worry the additional costs may reduce interest from US buyers or force them to take financial losses just to stay in business.

    Analysts have raised concerns about the broader implications, warning that the tariff could hurt Ghana’s export-led economic strategy and foreign exchange income, particularly as the country works to move beyond raw material exports.

    Others suggest this could be an opportunity for the government to strengthen its participation in the African Continental Free Trade Area and explore new markets.

    In response to the development, Ghana’s sector Ministers for Foreign Affairs and Trade, Agribusiness and Industry have initiated diplomatic discussions with US Ambassador to Ghana, Virginia Palmer. The engagements, which took place behind closed doors on April 7, are aimed at finding ways to ease the potential impact of the new tariff.

  • Gov’t to engage private sector over cocoa output, exports – Agric Minister

    Gov’t to engage private sector over cocoa output, exports – Agric Minister

    A major collaboration between the government and private investors is set to drive a large-scale expansion in cocoa farming, with more than 10,000 hectares earmarked for cultivation.

    The initiative is part of broader efforts to stimulate economic activity and increase Ghana’s competitiveness in the global cocoa industry.

    Minister for Food and Agriculture, Dr. Eric Opoku, shared details of the plan at a press briefing ahead of the Feed Ghana Project’s official launch on April 11.

    He stressed that government would play a key oversight role to ensure the program leads to real benefits such as jobs, export growth, and value-added production.

    “We are even bringing in some investors, they’re partnering Ghanaians to go into 10,000 hectares of cocoa production and they have assured that they will establish processing plant to add value before they export. So we are in touch with the private sector in the production as well as the marketing,” he said.

    The announcement comes amid a troubling decline in Ghana’s cocoa sector. In the last quarter of 2024, the industry shrank by 21.4%, continuing a six-quarter trend of negative growth. Earlier in the year, output also fell sharply by 26% in both the second and third quarters.

    To address broader challenges in agriculture, Dr. Opoku highlighted additional steps being taken, including new partnerships to improve market access for tomato farmers.

    “In the short term what we have done is that we have had discussions with some tomato factories in Tema to connect to the farmers and provide ready market for them by deploying mini processing plants to the farmers in the hinterland,” he added.

    These actions form part of a wider strategy to revitalize agribusiness and attract more private investment into Ghana’s food production value chain.

  • Cocoa production has dropped by 50 percent in the last 3 years – Finance Minister

    Cocoa production has dropped by 50 percent in the last 3 years – Finance Minister

    Ghana’s cocoa industry has experienced a sharp decline, with production dropping by 50% over the past three years, raising concerns about the country’s economic stability and export commitments.

    Finance Minister Dr. Cassiel Ato Forson made this revelation while presenting the 2025 Budget Statement to Parliament on March 11. He highlighted the challenges facing the sector, particularly its inability to meet international supply demands.

    Dr. Forson disclosed that during the 2023/2024 crop season, the Ghana Cocoa Board (COCOBOD) was unable to deliver 330,000 tonnes of cocoa required to fulfill contractual agreements.

    “This under-supply has been rolled over for subsequent supply by the new administration,” he stated, emphasizing the impact of the production shortfall on Ghana’s export commitments.

    He further stressed the need for urgent policy interventions to revive the sector, noting that cocoa remains a pillar of Ghana’s economy.

    “Cocoa production has dropped by nearly 50% over the past three years,” he told Parliament, acknowledging the mounting concerns of industry stakeholders.

    To address the crisis, Dr. Forson assured lawmakers that the government is committed to implementing strategies aimed at boosting productivity and ensuring the stability of cocoa exports.

  • Ghana rakes in billions from gold, cocoa, and petroleum exports in 2024

    Ghana rakes in billions from gold, cocoa, and petroleum exports in 2024

    Ghana’s export sector experienced significant growth in 2024, with total exports amounting to GH₵294.9 billion. This exceeded the country’s import bill of GH₵250.2 billion, resulting in a trade surplus of GH₵44.7 billion, as highlighted in the latest Trade Report from the Ghana Statistical Service (GSS).

    Gold, petroleum, and cocoa remained Ghana’s dominant export commodities, collectively accounting for 78.2% of total export revenue. Gold bullion led the way, generating GH₵162.99 billion and representing 55.3% of total exports.

    Crude petroleum oils followed with earnings of GH₵52.58 billion, contributing 17.8% to the country’s export revenue. Cocoa products, including beans and paste, brought in GH₵21.55 billion, making up 8.4% of total export earnings.

    Beyond these top three exports, other notable contributors included manganese ores, natural cocoa butter, cashew nuts, processed tuna, iron/steel, and shea oil.

    The trade surplus of GH₵44.7 billion signals the strength of Ghana’s export-driven economy. Analysts remain optimistic about the sector’s continued expansion, fueled by stable global demand for gold, crude oil, and cocoa.

    RankExport ItemValue (GH₵ Billion)Percentage Share (%)
    1Gold bullion162.9955.3
    2Crude petroleum oils52.5817.8
    3Cocoa beans (superior quality raw beans)14.955.1
    4Cocoa paste (not defatted)6.602.2
    5Manganese ores and concentrates3.431.2
    6Natural cocoa butter3.181.1
    7Cashew nuts (in shell)2.650.9
    8Tuna, skipjack, and Atlantic bonito (prepared/preserved, not minced)2.230.8
    9Iron/Steel (h/r, irregular coils, not further forged)1.930.7
    10Shea (karite) oil and fractions, crude1.930.7
  • Ghana’s cocoa to undergo heavy metal screening by EU, Japan in September

    Ghana’s cocoa to undergo heavy metal screening by EU, Japan in September

    Beginning September, the European Union (EU) and Japan will conduct heavy metal tests on cocoa exports from Ghana, citing contamination risks associated with illegal mining.

    This development could have a significant impact on Ghana’s cocoa trade, particularly in key international markets.

    At a conference on responsible small-scale mining, acting COCOBOD CEO Dr. Randy Abbey stressed the urgent need to address illegal mining, warning that it poses a serious threat to Ghana’s reputation as a top cocoa producer.

    “The European Union and Japan have indicated that from September this year, they will begin testing for heavy metals, especially nickel, in our cocoa. The premium status of our cocoa, which gives us extra money, is under serious threat because they are starting with nickel. North America and most parts of Asia will follow shortly,” he cautioned.

    Dr. Abbey also noted that COCOBOD will face increased financial pressure due to this new requirement.

    “As a result of this, COCOBOD will have to spend significant amounts of money to set up state-of-the-art laboratories at the Quality Control Center in Tema to meet the standards and test for these heavy metals. The testing is no longer just for moisture and other known factors.

    “Now, they want to test for heavy metals because of the stories and the reality of the impact of illegal mining in cocoa-growing areas,” he explained.

    As global buyers impose stricter rules, Ghana is under growing pressure to mitigate the environmental harm from illegal mining to safeguard its cocoa exports.

  • Better crop, smuggling crackdown see cocoa arrivals surge to 70% – Report

    Better crop, smuggling crackdown see cocoa arrivals surge to 70% – Report

    Cocoa deliveries to Ghana’s warehouses have seen a remarkable surge, with arrivals up by approximately 70% compared to the previous season.

    This increase has been credited to a combination of improved yields and a successful clampdown on smuggling.

    According to Bloomberg, an estimated 560,250 tons of cocoa beans have been received by the industry regulator’s warehouses since the start of the 2024-25 season on February 13, 2025. This figure marks a sharp rise from the 330,000 tons recorded during the same period last year.

    The turnaround in cocoa production comes at a crucial time, as the global market remains focused on West African supplies following a challenging previous season. Poor harvests had led to a significant global cocoa shortage, pushing prices to record highs.

    In 2024, Ghana’s cocoa export earnings dropped sharply from US$2.152 billion in December 2023 to US$1.696 billion, largely due to extreme weather conditions and the impact of illegal mining activities (galamsey) on farmlands.

    With production bouncing back, industry stakeholders are closely monitoring Ghana’s ability to sustain this momentum and stabilize global cocoa supply chains.

  • Prices of cocoa have not increased – COCOBOD

    Prices of cocoa have not increased – COCOBOD

    The Ghana Cocoa Board (COCOBOD) has addressed a viral flyer circulating on social media, claiming an increase in cocoa prices.

    The board firmly rejected these claims, clarifying that no such price hike has been declared.

    COCOBOD confirmed that the current cocoa prices remain unchanged, and no official announcements regarding price adjustments have been made.

    In a statement shared on its Facebook page on February 17, 2025, COCOBOD called on the public and stakeholders to ignore the misleading flyer and urged caution against the spread of misinformation.

    The board reassured everyone that any updates about cocoa prices would be shared through its official channels.

    The flyer falsely suggested that the Minister of Food and Agriculture, Eric Opoku, had declared that cocoa farmers would receive 70% of the global market price.

    COCOBOD has denied this assertion, clarifying that no such announcement was ever made.

    “Our attention has been drawn to a false flyer circulating on social media, claiming that the Minister for Food and Agriculture has announced an increase in cocoa prices. This information is completely untrue. We urge our cherished stakeholders and the public to disregard this fake news and rely only on official communication from COCOBOD and the ministry,” the statement read.

  • Ghana, Brazil sign cocoa pact to enhance global industry collaboration

    Ghana, Brazil sign cocoa pact to enhance global industry collaboration

    The Ghana Cocoa Board (COCOBOD) has entered into a strategic partnership with Apex Brasil and the Brazilian Ministry of Agriculture and Livestock to foster greater collaboration in the cocoa industry.

    This agreement was formalized during a key meeting at Cocoa House in Accra, which was part of a Brazilian Presidential Mission to Africa.

    Leading the Brazilian delegation, Her Excellency Marirana Madeira, Brazil’s Ambassador to Ghana, alongside officials from Apex Brasil and the Ministry of Agriculture, held discussions with COCOBOD’s Acting Chief Executive and his team. The talks focused on enhancing technical and economic collaboration between both countries in the cocoa sector.

    The agenda centered on utilizing Brazil’s technological advancements to boost cocoa productivity, exchanging methods for managing cocoa diseases, and facilitating joint research efforts between Brazil’s cocoa industry and Ghana’s Cocoa Research Institute (CRIG).

    One of the key issues raised during the meeting was the state of the global cocoa market and price fluctuations. The importance of collaboration between the world’s top cocoa producers—Ghana, Côte d’Ivoire, Brazil, Nigeria, and Ecuador—was also emphasized in order to increase cocoa farmers’ incomes and support sustainable practices within the cocoa sector.

    The discussions also delved into potential scientific partnerships, particularly in areas such as cocoa flavor research and disease management, including efforts to combat Witches’ Broom in Brazil and Cocoa Swollen Shoot Virus Disease (CSSVD) in Ghana.

    Additionally, the delegation showed interest in Ghana and Côte d’Ivoire’s $400 per tonne Living Income Differential (LID), a model designed to raise cocoa farmers’ earnings.

    At the conclusion of the meeting, COCOBOD, Apex Brasil, and Brazil’s Ministry of Agriculture and Livestock officially signed the Declaration of Intent, marking a significant step in strengthening ties between Ghana and Brazil while promoting sustainable cocoa farming practices and research cooperation.

  • Ghana’s total exports surged by 21.06% to $20.22bn in December 2024 – BoG

    Ghana’s total exports surged by 21.06% to $20.22bn in December 2024 – BoG

    Ghana’s total exports saw a remarkable increase of 21.06% in December 2024, reaching $20.22 billion, a significant boost driven by a sharp rise in gold exports, according to data from the Bank of Ghana.

    Gold exports surged by an impressive 53.15%, accounting for $11.64 billion of the total export value by the end of December. However, the gains in gold were offset by declines in other major export commodities, such as crude oil and cocoa.

    Crude oil exports fell slightly by 0.7% to $3.68 billion, while cocoa exports dropped to $1.696 billion from $2.152 billion in December 2023. The decline in cocoa was attributed to the adverse effects of extreme weather conditions and illegal mining activities (galamsey), which have strained production.

    The trade balance also showed notable improvement, recording a provisional surplus of $4.98 billion in December 2024—almost double the $2.694 billion surplus recorded in the same period of the previous year. The robust trade performance was primarily bolstered by the increased export earnings from gold.

    On the import side, Ghana’s total import bill rose to $15.24 billion in December 2024, compared to $14.008 billion in December 2023. This growth in imports, coupled with the strong export performance, contributed to a healthier external sector position for the country.

    The Bank of Ghana highlighted the overall improvement in the external sector in its November 2024 Monetary Policy Committee (MPC) report, noting that the progress was supported by a higher current account surplus and reduced net financial outflows, which led to a substantial buildup of gross international reserves.

    Ghana’s gross international reserves climbed by $1.101 billion in December 2024 to $8.982 billion, equivalent to 4.0 months of import cover. This was a considerable increase from the $6.31 billion recorded in January 2024, demonstrating a consistent upward trend throughout the year.

  • Ghana delays 370,000 tons of cocoa delivery due to poor harvest – Eric Opoku

    Ghana delays 370,000 tons of cocoa delivery due to poor harvest – Eric Opoku

    Food and agribusiness minister-designate, Eric Opoku, has told a parliamentary committee that Ghana postponed the delivery of 370,000 metric tons of cocoa for the 2023/24 season due to lower-than-expected production

    This is an increase from the 350,000 tons that were previously reported by Reuters.

    This delay, which shifts the delivery from the 2023/24 season to the ongoing season, is a result of a significant drop in cocoa production to its lowest level in two decades, Opoku explained during his vetting session in parliament.

    Earlier in June, Reuters had reported that Ghana, the second-largest cocoa producer globally, was considering delaying the delivery of up to 350,000 tons of cocoa beans to the next season due to poor crop yields.

    Cocoa production in Ghana reached its peak in 2021 with over 1 million tons, but the figure has steadily declined since then, hitting its lowest point last season.

    Experts attribute the decline to climate change and tree diseases, while many farmers also point to the government’s failure to address illegal gold mining, which has devastated large areas of the country’s cocoa-producing regions.

    Opoku noted that production in the 2023/24 season fell to “the lowest in two decades,” with figures from the cocoa marketing board (COCOBOD) showing production levels below 550,000 tons.

    The reduced cocoa output also caused Cocobod to default on the repayment of an $800 million loan taken from international lenders to finance cocoa purchases for the season.

    COCOBOD was unavailable for comment at the time of writing.

  • I don’t set cocoa prices, but farmers will get a fair price – Ato Forson

    I don’t set cocoa prices, but farmers will get a fair price – Ato Forson

    Finance Minister-designate Dr. Cassiel Ato Forson has assured cocoa farmers that while he does not have the authority to set cocoa prices, he will advocate for fair pricing to ensure their welfare.

    During his vetting before Parliament’s Appointments Committee, Forson emphasized his long-standing commitment to improving the livelihoods of cocoa farmers.

    “I am the biggest advocate for cocoa farmers. I have done that in the last 8 years, and I have fought for the cocoa farmer year in, year out. I will work to improve the lot of the cocoa farmer, recognising their contribution to the economy,” he stated.

    Acknowledging challenges in the cocoa sector, he warned that the industry is in decline and requires urgent intervention. “The sector is collapsing and dwindling at a very fast rate. We need to do something, including the farm gate price and revamping the sector,” he stressed.

    Clarifying his mandate, Forson pointed out that cocoa pricing falls outside the jurisdiction of the Finance Ministry. “The Ghana Cocoa Board is under the Ministry of Agriculture. It is not under the Ministry of Finance. I don’t have the sole power, prerogative to announce cocoa price today, but as a minister, I’ll be the champion for cocoa farmers and I’ll make sure they get the fair price,” he assured.

    His remarks come after then-President Nana Akufo-Addo increased the producer price of cocoa from GH₵3,000 to GH₵3,100 per 64kg bag for the 2024/2025 crop season. This 3.3% increment, announced ahead of the season, raised the price to GH₵49,600 per tonne, aiming to better reflect market conditions and offer enhanced support to cocoa producers.

  • Global restricted supply projected to surge cocoa prices in 2025

    Global restricted supply projected to surge cocoa prices in 2025

    Cocoa prices are expected to surge in 2025, with projections indicating a potential rise to as high as US$9,600 per metric tonne (pmt) due to tight global supply conditions.

    According to Databank’s 2025 projections, “The European Union Deforestation Regulation (EUDR), effective in early 2025, will further restrict supply availability; likely keeping prices elevated amid strong global demand for chocolate.”

    This forecast follows a remarkable price increase in 2024, when cocoa prices nearly doubled by mid-November, reaching US$8,523 from an initial US$4,916. The 73.4 percent rise was driven by supply shortages in Ghana and Côte d’Ivoire, exacerbated by the impact of El Niño on yields, as well as growing global demand for chocolate.

    By December 2024, global cocoa prices hit US$10.32 per kilogram, marking a 30.73 percent increase from November and a staggering 145.2 percent rise from December 2023.

    However, the domestic cocoa industry in Ghana has faced significant challenges, particularly in securing funding. Inefficiency on the part of the industry regulator, Ghana Cocoa Board (COCOBOD), has been cited as a major factor. Last year, COCOBOD struggled to raise its annual syndicated loan from its usual partners, preventing local farmers from fully benefiting from the price increase.

    In response, COCOBOD announced a significant cocoa price increase for the 2024-2025 season, setting the price at GH¢48,000 per tonne, equivalent to GH¢3,000 per 64-kilogramme bag. This marked a 129.36 percent increase from the previous season. However, civil society groups argued that this price, approximately US$185 at the time, was still insufficient for the farmers.

    As the industry prepares for the EU’s new deforestation regulation, the local cocoa sector faces significant challenges. The EUDR mandates that cocoa commodities entering the EU market must be traceable and proven to be deforestation-free post-December 2020. While the regulation aims to reduce environmental degradation, it imposes additional burdens on cocoa producers.

    In response to these new challenges, the government has launched a National Cocoa Management System (NCMS), which includes a Cocoa Traceability System to help meet EUDR requirements. 

    The system will map cocoa farms and ensure compliance with deforestation-free standards. However, the implementation of this system remains resource-intensive, posing further obstacles for local producers.

  • Weak cocoa harvests impacting COCOBOD’s ability to fulfill financial obligations – IMF

    Weak cocoa harvests impacting COCOBOD’s ability to fulfill financial obligations – IMF

    The International Monetary Fund (IMF) has projected a challenging financial outlook for the Ghana Cocoa Board (COCOBOD) in 2024, despite some positive results in 2023.

    Although global cocoa prices reached record levels, COCOBOD has faced significant obstacles due to lower-than-expected production during the 2023/2024 cocoa season.

    This production shortfall has impaired the board’s ability to meet its obligations under existing forward sales contracts.

    According to the Ghana Statistical Service, the cocoa industry continues to experience severe setbacks, with a 26% reduction in output in the third quarter of 2024, marking the fifth consecutive quarter of contraction.

    These figures highlight the difficulties faced by the sector in sustaining production levels that would allow it to take full advantage of favorable global market conditions.

    The IMF further noted that Ghana’s forward sales agreements have hindered the country’s capacity to capitalize on rising international cocoa prices.

    This missed opportunity has contributed to the sector’s ongoing struggles.

    In response, the government has taken steps to address these challenges by increasing the farmgate price for cocoa by 50% for the 2024/2025 season.

    This move is intended to reduce the illegal export of cocoa and prevent the conversion of cocoa farms into illegal mining sites.

    The IMF’s latest report also acknowledged the government’s ongoing efforts to stabilize the cocoa sector, including the establishment of a dedicated cocoa desk within the Ministry of Finance.

    This initiative is part of a broader strategy aimed at restoring COCOBOD’s financial sustainability and ensuring the long-term viability of the cocoa industry in Ghana.

  • Cashew farmers ‘fight’ for increased producer price after 3.33% surge in cocoa price

    Cashew farmers ‘fight’ for increased producer price after 3.33% surge in cocoa price

    Cashew farmers in Wenchi, a town in the Bono Region, are urging President Nana Akufo-Addo to instruct the Tree Crop Development Authority (TCDA) to set and announce a minimum producer price for raw cashew nuts (RCNs) ahead of the December 7 general election.

    Their appeal follows a recent 3.3% increase in cocoa prices, which has sparked hope for similar consideration for cashew producers. As of March 25, 2024, the price for raw cashew nuts stands at GH₵8.21 per kilogram.

    According to the farmers, announcing a fixed minimum price for the 2024-2025 cashew season before the election would allow stakeholders in the cashew value chain to operate with greater confidence and stability. Led by the National Chairman of the Cashew Farmers Association, Nana Adu Boamponsem V, the farmers voiced their concerns during an interaction with journalists in Wenchi over the weekend.

    Nana Boamponsem stated, “If the minimum producer price for cashew is fixed before the election on December 7, it will be binding for the next government irrespective of the political party that will form the government.”

    He suggested that factors such as the current cedi-to-dollar exchange rate and the international market price for RCNs should be considered when setting the price.

    “Currently, the cost of producing cashews has multiplied, and if the TCDA does not consider all the necessary indicators before fixing the price, it will adversely affect us, the farmers,” Nana Boamponsem added.

    The farmers also expressed disappointment that, aside from establishing the TCDA, the government has yet to fulfill other promises made to cashew growers.

    “We have heard that other tree crop farmers have received some support from the government, but those of us cultivating cashews have not had anything,” Boamponsem noted, urging the TCDA and government to support cashew farmers in reaching a production target of 400,000 metric tons of RCNs within four years.

    The government, he added, should honor its pledge to elevate the cashew sector, similar to how cocoa has become one of Ghana’s top foreign exchange earners.

    Secretary of the farmers, Yahaya Bellu, also called on the government to permit foreign buyers to purchase directly from farms or cooperatives if local buyers fail to pay the established minimum price. He emphasized that cashew farmers would consider their options in the upcoming election if their demands are unmet.

    The demands from cashew farmers come shortly after cocoa farmers celebrated a price increase, with President Akufo-Addo recently raising the cocoa producer price from GH₵3,000 to GH₵3,100 per 64kg bag for the 2024/2025 crop season.

    This adjustment, equivalent to GH₵49,600 per tonne, was designed to better reflect market conditions and offer additional support to cocoa producers.

    A section of the general public believes this adjustment is to sway electorates to vote for the ruling party in the upcoming elections.

  • Cocoa producer price increases from GHS3k to GHS3.1k for 2024/2025 season

    Cocoa producer price increases from GHS3k to GHS3.1k for 2024/2025 season

    In a move to support cocoa farmers, President Nana Addo Dankwa Akufo-Addo announced a marginal increase in the producer price of cocoa, raising it from GH₵3,000 to GH₵3,100 per 64kg bag for the 2024/2025 crop season.

    This 3.33% rise follows a review of market conditions and was recommended by the producer price review committee.

    At the National Farmers’ Day awards held in Accra on Friday, November 8, the president explained,“On the advice of the producer price review committee, I am pleased to announce an increase in the producer price of cocoa from GH₵48,000 to GH₵49,600 per tonne, raising the price from GH₵3,000 to GH₵3,100 per bag.”

    He further emphasized that the government remains committed to supporting farmers by ensuring periodic price reviews, helping improve their incomes despite ongoing challenges.

    The National Farmers’ Day also saw the recognition of Nana Owusu Achiaw Brempong from the Sekyere Central district of the Ashanti Region, who was named the National Best Farmer.

    With 50 years of experience in farming, Nana Owusu operates North American farms, which employ 168 workers in the cultivation of crops such as cocoa and cashew. As part of his recognition, he was awarded one million Ghana cedis.

    During his acceptance speech, Nana Owusu called for greater efforts to improve food security, a theme echoed throughout the event.

    The National Farmers’ Day celebrations, held across the country, highlighted the contributions of farmers to Ghana’s economy, with President Akufo-Addo and other dignitaries present to honor their hard work and dedication.

  • Producer price of 64kg bag of cocoa increases by GHC100

    Producer price of 64kg bag of cocoa increases by GHC100

    The producer price of a 64kg bag of cocoa has been raised by GH₵100, increasing from GH₵3,000 to GH₵3,100 for the 2024/2025 crop season, President Nana Addo Dankwa Akufo-Addo announced.

    This adjustment, which represents a 3.33% rise from the previous rate set in September, is intended to bring cocoa prices in line with current market conditions. Speaking at the National Farmers’ Day awards in Accra on Friday, November 8, President Akufo-Addo said, “On the advice of the producer price review committee, I am pleased to announce an increase in the producer price of cocoa from GH₵48,000 to GH₵49,600 per tonne, raising the price from GH₵3,000 to GH₵3,100 per bag.”

    The president noted that this increase follows his directive for periodic reviews aimed at supporting farmers’ incomes amid economic challenges.

    Meanwhile, Nana Owusu Achiaw Brempong, a 70-year-old farmer from the Sekyere Central district in the Ashanti Region, was awarded the National Best Farmer title. With 50 years in agriculture, Nana Owusu manages North American Farms, employing 168 workers across a range of crops, including cocoa and cashew. He was awarded one million Ghana cedis as part of his prize and, in his acceptance speech, urged for greater measures to boost food security.

    The Farmers Day celebrations were held nationwide, recognizing the contributions and dedication of farmers to Ghana’s economy.

  • Price hike anticipation spurs cocoa bean hoarding in Ghana

    Price hike anticipation spurs cocoa bean hoarding in Ghana

    Sources in the Cocoa industry have reported to Reuters that Cocoa farmers in Ghana are stashing beans in hopes of securing better prices in the near future.

    Their action stems from NPP Flagbearer Mahamudu Bawumia’s promise to supporters of the ruling New Patriotic Party four weeks ago that the government would raise prices for cocoa farmers.

    It is not fully known how widespread the practice of storing cocoa beans in rural areas is, however, about twelve farmers, buyers, and officials from COCOBOD have acknowledged that the practice is ongoing.

    In discussing the practice, one farmer who wished to remain anonymous, confirmed, “I have more than 300 bags, but I won’t sell,” said a cocoa farmer in south-central Ghana, who asked not to be named. “I will only sell after Christmas. We want to see if they will increase the price as they said.”

    Ghana lost more than a third of its 2023/24 cocoa output to smuggling, according to Cocobod officials, adding to woes that brought production to a more than two-decade low and helped send global cocoa prices to record highs.

    In a bid to boost farmer incomes and deter smuggling, Ghana raised the fixed farmgate price by nearly 45% to 48,000 cedis, or just under $3,000, per metric ton for the 2024/25 season, which opened in September.

    However, Ivory Coast – Ghana’s neighbour and the world’s biggest cocoa grower – raised its price to 1,800 CFA francs ($3.00) per kilogramme, just slightly above Ghana’s.

    Dr Bawumia, who is running for the presidency in Dec. 7 elections, was speaking in Sefwi Wiaso in southwestern Ghana, one of the country’s biggest cocoa growing towns.

    He has since said his comments had been misunderstood.

  • 74,813 rehabilitated farms boost cocoa yields to 1,408 kg/ha in 2024 – COCOBOD CEO

    74,813 rehabilitated farms boost cocoa yields to 1,408 kg/ha in 2024 – COCOBOD CEO

    The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Mr. Joseph Boahen Aidoo, has announced an improvement in cocoa yields, attributing the success to the rehabilitation of 74,813 farms, covering 67,385 hectares.

    This initiative has led to an increase in cocoa productivity from 450 kg per hectare in 2016 to 1,408 kg per hectare in 2024. Speaking at a press briefing to highlight the achievements of the cocoa sector since 2017, Mr. Aidoo outlined the extensive measures implemented to boost yields and support farmers.

    He noted that COCOBOD had registered 792,954 cocoa farmers, alongside mapping 1.24 million hectares of cocoa farms. This effort has allowed for better resource allocation and streamlined payment processes, ensuring that farmers receive timely and transparent payments for their produce.

    To address ongoing challenges in cocoa production, COCOBOD has intensified the Cocoa Rehabilitation Programme, which involves replanting diseased and unproductive farms. So far, 44,480 farms covering 40,150.40 hectares have been successfully rehabilitated and are ready to be handed over to their owners. These rehabilitated farms are expected to significantly contribute to the revival of Ghana’s cocoa sector in the coming years.

    In addition to rehabilitation efforts, COCOBOD has distributed millions of cocoa seedlings and introduced mechanization initiatives such as motorized pruners, which have helped to enhance farm efficiency and improve tree health.

    In August this year, Mr. Aidoo acknowledged that COCOBOD had to revise its cocoa production forecast for the 2023/2024 season, reducing it from 810,000 metric tonnes to 650,000 metric tonnes. He attributed this shortfall to unfavourable weather conditions in the southwestern part of the country, which impacted production negatively.

    Meanwhile, the COCOBOD has highlighted the introduction of the Living Income Differential (LID) in 2019, a government initiative aimed at improving the earnings of cocoa farmers. The LID requires buyers to pay an additional US$400 per ton of cocoa on top of the floor price.

    This measure has generated over USD 1.2 billion in additional income for farmers, significantly enhancing their financial stability.

  • 120,000 metric tons of cocoa smuggled out of Ghana in the last 2 years – COCOBOD

    120,000 metric tons of cocoa smuggled out of Ghana in the last 2 years – COCOBOD

    Ghana’s cocoa industry is facing a severe challenge, with over 120,000 metric tons of cocoa beans smuggled out of the country between 2022 and 2023, according to Joseph Boahene Aidoo, CEO of the Ghana Cocoa Board (COCOBOD).

    The alarming figure highlights the growing issue of cross-border smuggling, which threatens both the livelihoods of cocoa farmers and the nation’s economy.

    Speaking at a press briefing in Accra on Monday, October 14, Mr. Aidoo disclosed that the increasing trend of smuggling is driven by higher cocoa prices in neighboring countries, making it more lucrative for smugglers to divert Ghanaian cocoa beans for better profits.

    “The current international market pricing system is creating an imbalance. Smugglers are exploiting this by moving cocoa out of Ghana to countries where the price is more attractive,” Mr. Aidoo explained. “Between last year and this year, Ghana has lost between 100,000 and 120,000 metric tons of cocoa through illegal channels.”

    He warned that the situation is undermining efforts to boost Ghana’s cocoa production and export earnings. Despite interventions by COCOBOD and government agencies, the fight against smuggling has been less effective than anticipated. The CEO emphasized that the illegal trade not only reduces Ghana’s cocoa export figures but also deprives farmers of their hard-earned income.

    “This illicit activity is detrimental to the nation. Cocoa farmers are losing out, and the country is missing valuable revenue that could support critical sectors of the economy,” Aidoo said. He pointed out that the 2022-2023 cocoa season has been particularly affected by the smuggling activities.

    The CEO called for urgent regional cooperation between Ghana and its neighboring countries to close the gaps that smugglers are exploiting. He also stressed the need for enhanced border security and the deployment of advanced monitoring systems to track the movement of cocoa across borders.

    While COCOBOD is working to address the issue, Mr. Aidoo admitted that without a coordinated response across the region, Ghana’s cocoa industry could continue to suffer significant losses. “Stronger partnerships and stricter controls at the borders are crucial if we are to stop this damaging trend,” he concluded.

  • Cocoa smuggling taskforce nabs 100 bags in Old Akrade operation

    Cocoa smuggling taskforce nabs 100 bags in Old Akrade operation

    Anti-Cocoa Smuggling Taskforce of the Ghana Cocoa Board (COCOBOD), in collaboration with national security, has apprehended a driver and a mate at old Akrade in the Asuogyaman district for attempting to smuggle cocoa beans.

    The taskforce received a tip-off around midnight about individuals transporting cocoa beans to Togo.

    Through surveillance, the taskforce uncovered a staggering 100 bags of cocoa beans concealed under a load of chippings in a tipper truck with the registration number GN-1773-24.

    The source described the operation as decisive one against growing cocoa smuggling in the country and that it underscored the commitment of authorities to safeguard Ghana’s cocoa industry and combat illegal trading activities aimed at exporting cocoa beans across the border to neighbouring Togo.

    “Because of the heavy security officials of the military and immigration at the two tollbooths on the Adomi Bridge, we suspected them to have used a ferry to cross the lake at Senchi so that they would go through Juapong to their preferred location,” the security official said.

    Recently, Ghana’s cocoa sector has been facing significant challenges due to widespread smuggling, climate change, disease, and illegal mining activities.

    Cocoa is also more profitable in the Ivory Coast and Togo than in Ghana because of a more stable CFA franc currency and a less regulated sector, according to experts.

    By the end of June, Ghana had produced 429,323 metric tonnes of cocoa, which is less than 55 percent of the average production at the same point in previous seasons.

    According to the anti-smuggling task force, cocoa losses due to smuggling have more than tripled in 2023/24. It is conservatively estimated that the country lost 160,000 tonnes.

    However, efforts by the task force have yielded some marginal results as it was able to intercept about 250 tons, up from 17 tons in 2022/23.

  • Ivory Coast’s cocoa price hike heightens smuggling threat for Ghana

    Ivory Coast’s cocoa price hike heightens smuggling threat for Ghana

    Ghana faces an increased risk of cocoa smuggling after Ivory Coast’s recent decision to raise its farmgate cocoa price, overtaking Ghana’s rate. As the world’s top cocoa producer, Ivory Coast aims to curb illegal bean exports, but this move could significantly affect Ghana’s cocoa industry.

    Ivory Coast’s Agriculture Minister, Kobenan Kouassi Adjoumani, announced in Abidjan that the farmgate price will rise by 20%, from 1,500 CFA francs (around GH₵40) to 1,800 CFA francs (approximately GH₵48) per kilogram, starting on October 1, 2024.

    This increase means a 64 kg bag of cocoa will now cost about GHS 3,072, slightly higher than Ghana’s current price of GH₵3,000 per bag. The price adjustment is intended to deter cocoa smuggling into Ghana, though it may not entirely prevent illegal exports to other neighboring countries like Liberia and Guinea, where buyers offer prices closer to the global market rate.

    During the 2023/2024 season, Ivory Coast reportedly lost between 150,000 to 200,000 tons of cocoa to smuggling, according to Bloomberg.

    Implications for Ghana

    Ghana, the second-largest cocoa producer globally, has faced similar challenges. According to Reuters, low domestic prices and delayed payments have pushed some farmers to sell their cocoa to well-organized smuggling networks. In the 2023/2024 season, the country lost around 160,000 metric tons to smuggling, up from 150,000 tons the prior season.

    Ghana’s lower cocoa prices, compared to neighboring countries like Côte d’Ivoire—where the price per bag was approximately GHS 2,560 in the 2023/2024 season, GHS 490 higher than Ghana’s rate—led to increased smuggling.

    In response, the Ghana Cocoa Board (Cocobod) raised the farmgate price by 45% for the 2024/2025 season, from GHS 2,070 to GHS 3,000 per 64 kg bag.

    Ghana’s effort to curb smuggling by raising farmgate prices may fall short, as Ivory Coast’s recent price hike could undermine these measures. Their rates still present a more attractive opportunity for smugglers.

    Ghana’s Production Dynamics

    Low yields in Ghana and Ivory Coast have led to a four-year global cocoa supply shortage, pushing up cocoa and chocolate prices. However, Ghana has been unable to capitalize on these higher international prices due to widespread smuggling.

    By June 2023, Ghana’s cocoa output had fallen to 429,323 metric tons, representing less than 55% of the average production for the same period in earlier seasons, marking the steepest decline in over 20 years.

  • Côte d’Ivoire increases cocoa prices, surpasses Ghana

    Côte d’Ivoire increases cocoa prices, surpasses Ghana

    Ivory Coast, the top cocoa producer globally, has raised the price it offers farmers for cocoa, now outpacing Ghana, despite both countries’ growers still receiving considerably lower payments than international market rates.

    The Ivorian government announced a 20% increase in the farmgate price to 1,800 CFA francs (approximately $3.06) per kilogramme, effective from the harvest starting on October 1, as stated by Agriculture Minister Kobenan Kouassi Adjoumani in Abidjan.

    This updated price translates to $3,060 per tonne, slightly higher than Ghana’s rate of $3,039 per tonne for its farmers this cocoa season.

    The increase may discourage the smuggling of cocoa from Ivory Coast to Ghana, which is the second-largest producer in the world.

    However, it might not entirely address the issue of illegal cocoa exports to neighbouring countries such as Liberia and Guinea, where prices are closer to global market values.

    During the previous cocoa season, West Africa’s production was significantly hindered by unfavorable weather conditions, pest outbreaks, and insufficient agricultural resources.

    This led to a sharp increase in cocoa futures, which surpassed $11,000 per tonne earlier this year. However, prices have since dropped, with futures trading at approximately $7,700 per tonne in New York as of Monday.

    Despite this rise in global prices, the pricing structures enforced by both the Ivorian and Ghanaian governments have prevented farmers from fully capitalising on the market upturn.

    This situation has deterred investment in cocoa farming and has also encouraged smuggling to neighbouring nations, where market regulations are less stringent and prices tend to be higher.

    According to a Bloomberg report from September 19, Côte d’Ivoire is estimated to have lost between 150,000 and 200,000 tonnes of cocoa due to smuggling during the crop year ending Monday.

    To tackle these issues, Côte d’Ivoire plans to align its output control, pricing, and marketing systems with Ghana starting from the 2024-25 season as part of a “strategic cooperation” initiative between the two nations, as announced by Adjoumani.

  • Trucks carrying illicit cocoa beans intercepted by NIB in Dambai

    Trucks carrying illicit cocoa beans intercepted by NIB in Dambai

    A large consignment of dried cocoa beans, intended for smuggling, has been intercepted by the National Intelligence Bureau (NIB) in Dambai, located in the Krachi East Municipality of the Oti Region.

    The consignment, consisting of three trucks disguised as crates of minerals, reportedly originated from the Ashanti Region, passed through the Eastern Region, and crossed the Volta River from Afram Plains into Oti before NIB officials intercepted it.

    According to Ghana News Agency (GNA), the drivers and their assistants are currently in police custody, assisting with investigations.

    This incident has occurred amidst growing concerns about cross-border smuggling and other illegal activities in the Oti Region. Reports indicate a rise in cocoa smuggling activities in areas such as Guan, Kadjebi, Nkwanta North, and Nkwanta South.

    Cocoa smugglers are said to be using northern routes in the Oti Region to illegally transport cocoa beans to Togo. Officials from the cocoa industry, whose names were withheld, have expressed alarm over this increasing trend, which is allegedly being supported by organized networks and individuals.

    They believe the higher prices offered by Togolese buyers, where the cocoa market is unregulated, are fueling the smuggling activities. The officials have urged the public to report any instances of cocoa smuggling to the authorities, encouraging the provision of rewards for information that leads to arrests and prosecutions.

    “We call on all Ghanaians to help fight against cocoa smuggling. Your information can safeguard Ghana’s cocoa industry and economy,” the officials stressed.

    The GNA also uncovered a new strategy used by smugglers, where they hide cocoa beans among crates of assorted drinks to bypass police checkpoints unnoticed.

    Residents have voiced concerns about how cocoa smuggling undermines the nation’s economy and threatens the livelihoods of farmers. Shadrach Badekebo James, a Dambai resident, called on the government to prioritize resources for the NIB and to reward the Oti Regional Command of the Bureau for their commitment to protecting the country.

  • Ghana’s cocoa exports plummet 26.9% in Q2 2024

    Ghana’s cocoa exports plummet 26.9% in Q2 2024

    Ghana’s cocoa bean exports have suffered a notable decrease, with a staggering 26.9% drop recorded in the second quarter of 2024, as reported by the Ghana Statistical Service.

    The value decreased from GH₵1.57 billion in Q2 2023 to GH₵1.15 billion in 2024, marking the fifth consecutive quarterly decline.

    This reduction is part of an ongoing downward trajectory, following a 24.7% fall in Q1 2024 compared to the same period in the previous year. The export value further dropped by 80% between the first and second quarters of 2024, resulting in a GH₵4 billion loss.

    Ghana’s cocoa sector is facing a difficult production season, with output by June 2024 reaching just 429,323 metric tonnes—less than 55% of the usual average. This could lead to the country’s lowest cocoa production in more than 20 years.

    Globally, the cocoa market is contending with a four-year supply deficit due to poor harvests in Ghana and Ivory Coast, pushing prices higher. However, Ghana has not capitalized on the price surge due to widespread smuggling. Frustrated by low domestic prices and delayed payments, many farmers have turned to smuggling operations, leading to a loss of over a third of the 2023/24 cocoa harvest—around 160,000 metric tonnes.

    In response, Ghana’s Cocobod has increased the farm gate price by 45% for the 2024/25 season, raising it from GH₵2,070 to GH₵3,000 per 64-kilogram bag. Previously, Ghana’s prices were GH₵490 lower than those in neighboring Côte d’Ivoire, fueling the smuggling problem.

    With the new adjustment, Ghana now offers GH₵440 more per bag compared to Côte d’Ivoire, though the latter has not yet released its pricing for the 2024/25 season.

  • Ghana records 160,000-tonne loss to cocoa smuggling in 2023/24 season – Report

    Ghana records 160,000-tonne loss to cocoa smuggling in 2023/24 season – Report

    Ghana COCOBOD has revealed that approximately 160,000 tonnes of cocoa were lost to smuggling during the 2023/2024 crop season, according to a report from Reuters.

    Charles Amenyaglo, the Director of Special Services at the cocoa authority, highlighted the severe impact of smuggling, stating that the country’s cocoa production loss was more than three times the total output for the 2023/2024 season.

    “Conservatively, I will say we lost 160,000 tonnes,” he informed Reuters, noting that a joint task force intercepted around 250 tonnes of smuggled cocoa beans, a significant increase from the 17 tonnes seized during the 2022/2023 season.

    Amenyaglo also mentioned that COCOBOD is collaborating with the Ghana Armed Forces to address the rising cases of cocoa smuggling to neighboring nations.

    Ivory Coast and Ghana produce about 60% of the world’s cocoa beans, but smuggling activities have affected output, pushing up market prices and contributing to the surge in chocolate costs this year.

    COCOBOD’s data indicated that Ghana harvested 429,323 metric tonnes of cocoa by the end of June, starting from the season’s onset in September, which accounted for less than 55% of the typical yield.

    Reuters also reported that the 2023/2024 season marked the steepest decline in cocoa production in the last two decades.

    In response, Ghana’s COCOBOD has set the farmgate price for cocoa farmers at GH¢48,000 per tonne, or GH¢3,000 per 64-kilogram bag, for the upcoming 2024/2025 crop season.

    This new rate reflects a 45% increase from April 2024 and a 129% rise compared to September 2023.

    The price hike follows COCOBOD’s discussions with the government aimed at boosting the producer price to discourage smuggling and enhance the livelihoods of cocoa farmers as the new season gets underway.

  • Cocoa producer price surges by over 120% for 2024/2025

    Cocoa producer price surges by over 120% for 2024/2025

    Minister of Food and Agriculture, Dr. Bryan Acheampong, has announced a dramatic 129.36% increase in the producer price of cocoa for the upcoming 2024/2025 season, effective Wednesday, September 11, 2024.

    The adjustment raises the price from GH¢20,928 per tonne at the beginning of the 2023/2024 season to GH¢48,000 per tonne. Correspondingly, the price per 64kg bag will increase from GH¢1,308 to GH¢3,000.

    “The Producer Price Review Committee (PPRC) on cocoa agreed on Tuesday on the Producer Price of cocoa and other rates and fees for the 2024/2025 crop season.”

    “We are pleased to announce that the producer price of cocoa for the 2024/25 season is GH¢48,000 per tonne or GH¢3,000 per 64kg bag. On an inter-season basis, it has been increased from GH¢20,928.00 per tonne or GH¢1,308.00 per 64kg bag at the opening of the 2023/24 season to GH¢48,000.00 per tonne or GH¢3,000.00 per 64kg bag.”

    “This is an unprecedented increase of 129.36%,” he stated.

  • COCOBOD reduces 2024/25 cocoa season output by 19.8% to 650,000 metric tonnes

    COCOBOD reduces 2024/25 cocoa season output by 19.8% to 650,000 metric tonnes

    The Ghana Cocoa Board (COCOBOD) has announced a reduction in its cocoa production target for the upcoming 2024/2025 season.

    The new season, set to begin on September 10, 2024, will open with a revised self-financing plan aimed at sustaining the sector amid challenging weather conditions.

    COCOBOD’s Chief Executive, Joseph Boahen Aidoo, disclosed that the initial production target of 810,000 metric tonnes has been reviewed downward by 19.8% to 650,000 metric tonnes. This significant reduction is attributed to the unprecedented dry spell that has affected cocoa-growing regions in Ghana, particularly the Bono and Western North areas.

    Speaking on the difficulties faced by farmers, Mr. Aidoo noted, “This is occasioned by what is happening in West Africa. There is a dry spell. Very unusual. It’s cloudy but it’s not raining.” The harsh weather conditions have made it difficult for farmers to maintain a successful planting season, contributing to the lower-than-expected output.

    In response to the challenges, COCOBOD has outlined measures to boost production over the next six years. Mr. Aidoo revealed that the organization is working towards producing an additional 200,000 metric tonnes of cocoa beans by replacing old, unproductive trees and supporting farmers with essential resources such as fertilizers and extension officers.

    “We have put in place an elaborate measure to support the farmers with fertilizers and extension officers. For the first time in many years, COCOBOD has helped the farmers with pruning,” he said.

    The Chief Executive expressed optimism about the long-term benefits of these interventions, highlighting the importance of cocoa as a key economic asset. “Cocoa trees are economic trees that bring in foreign earnings. It is the reason why COCOBOD has made it a point to always support farmers to keep the plants alive and flowery,” he added.

    Meanwhile, Ghana’s Finance Minister, Dr. Mohammed Amin Adam, has indicated that the government will seek external funding to further support the cocoa sector, reinforcing the significance of cocoa to the nation’s economy.

  • COCOBOD faces loan repayment crisis as cocoa smuggling soars

    COCOBOD faces loan repayment crisis as cocoa smuggling soars

    COCOBOD is facing the risk of defaulting on loans taken to support cocoa farming as smuggling activities continue to rise, according to Joseph Boahen Aidoo, CEO of Ghana COCOBOD.

    Addressing the media in Kumasi, Mr. Aidoo raised concerns about the impact of increasing cocoa smuggling on the repayment of loans that fund various interventions for farmers.

     These loans have been used to purchase essential inputs like fertilisers, pesticides, and cocoa seedlings.

    “This year, we supplied more than enough fertilisers, such as liquid fertiliser, insecticides, and fungicides. Cocobod also funded the pruning of cocoa farms,” he explained.

    However, with cocoa being smuggled out of the country, he questioned how COCOBOD would manage to repay these loans.

    Mr. Aidoo revealed that smugglers are employing new methods, including using fuel tankers to transport cocoa out of Ghana. 

    “Given the severity of the issue, military involvement is now deemed crucial,” he added, explaining that COCOBOD has requested the assistance of the Ministry of Defence to tackle the problem.

    The CEO emphasised that cocoa is vital to Ghana’s economy, providing the foreign exchange necessary to support the nation’s balance of payments. 

    “We cannot afford to lose our cocoa exports, especially since we heavily support local farmers,” he stressed.

    The Anti-Cocoa Smuggling Program, funded by COCOBOD, will be led by the armed forces to clamp down on illegal activities. 

    Mr. Aidoo expressed optimism that these efforts, along with other initiatives to boost cocoa production, will yield positive results in the coming year, benefiting both the industry and farmers.

  • Cocoa farmgate price in Ghana expected to rise by 45% – Report

    Cocoa farmgate price in Ghana expected to rise by 45% – Report

    Ghana is set to raise the state-guaranteed price paid to cocoa farmers by nearly 45% for the 2024/25 crop season, according to two sources familiar with the price review process.

    This increase aims to improve farmers’ incomes and curb the smuggling of cocoa beans out of the country.

    Earlier this year, Ghana, the world’s second-largest cocoa producer, raised the farmgate price by over 58% to 33,120 cedis ($2,123.08) per metric ton, or 2,070 cedis per 64 kilograms, for the remainder of the 2023/24 season.

    This mid-season adjustment followed a similar move by Ivory Coast, the top cocoa producer, which increased its farmgate price to 1,500 CFA francs (around 40 cedis) per kilogram for the April-to-September period.

    One source revealed that Ghana’s cocoa producer price review committee has set the new price at 48,000 cedis per ton, which equates to 3,000 cedis per 64 kilograms for the upcoming 2024/25 season, expected to begin later in September. This represents an increase of just under 45%.

    The proposal is awaiting approval from the cabinet, although the source indicated it is unlikely the cabinet will alter the committee’s decision. The source also mentioned that raising the price beyond 48,000 cedis per ton could push COCOBOD, Ghana’s cocoa marketing board, into a deficit.

    Ghana’s new pricing will also need to align with Ivory Coast’s farmgate price for the 2024/25 season, which has yet to be announced. The two leading cocoa-producing nations have coordinated their farmgate prices and cocoa supplies in recent years to stabilize the sector and enhance farmers’ incomes.

    Cocoa prices have been strong this year due to disease and adverse weather in Ghana and Ivory Coast, which together account for more than 60% of the world’s cocoa supply. The market is now facing a third consecutive deficit.

    On Thursday, the International Cocoa Organisation increased its global cocoa deficit forecast for the 2023/24 season to 462,000 tons, up from 439,000 tons, marking the lowest stocks-to-grindings ratio in 45 years.

  • Health safety at risk as farmers feed crops with water from polluted Pra River

    Health safety at risk as farmers feed crops with water from polluted Pra River

    The pollution of the Pra River due to illegal mining activities is causing severe repercussions that extend beyond the immediate destruction of the water source and the lack of potable water for nearby communities.

    Recent developments reveal that the contaminated river water is now being used to irrigate crops, putting public health at significant risk.

    A cocoa farmer from Twifo Praso in the Central Region disclosed this concerning practice during an interview with TV3’s Berla Mundi. He explained that the scarcity of clean water has compelled farmers to use the polluted Pra River as their only water source for both domestic and commercial purposes.

    The harmful chemicals from mining operations, which have seeped into the river, will now contaminate crops. These crops, which are to be used for domestic consumption and export, are being tainted with toxic substances such as mercury, arsenic, and lead—elements used in mineral processing that are dangerous to both aquatic life and humans.

    A video shared by Berla Mundi on August 31, 2024, highlighted the severity of the pollution. The footage shows the Pra River’s water appearing deep brown, indicating high levels of contamination. The video also depicted numerous chamfan machines—used for processing ore—lined up along the river, confirming their use by illegal miners.

    The impact on local water supply is dire. The management of Ghana Water Company Limited in the Central Region has reported a significant disruption in water services to Cape Coast, Elmina, and surrounding areas.

    Residents in these communities are facing severe shortages, with taps running dry for days and forcing them to endure increasingly challenging conditions due to the disruption of their once-reliable water supply.

    Presently, there is pressure on the government to relieve local authorities within this area of their duties as part of the government’s commitment to combat illegal mining.

    This comes after Asantehene Otumfuo Osei Tutu II destooled Sabronum Gyaasehene Nana Awua Gyau Atuomi, Akyeamehene, and Baamuhene for their involvement in illegal mining. Stakeholders want the president to emulate the Asantehene and sanction guilty government officials.

  • Ghana-Switzerland trade hits $3bn

    Ghana-Switzerland trade hits $3bn

    Switzerland has emerged as Ghana’s top export destination in 2023, with exports to Switzerland reaching a remarkable $3 billion.

    This represents a significant increase from the $1.5 billion in bilateral trade recorded in 2019.

    Speaking at a reception commemorating Switzerland’s 733rd anniversary, Ambassador Simone Giger highlighted that Ghana maintained its position as Switzerland’s second-largest trading partner in Sub-Saharan Africa, trailing only South Africa.

    The National Day celebration in Switzerland honors the country’s democratic institutions, established since the adoption of its constitution in 1848.

    The grand reception in Ghana was attended by high-ranking officials, ambassadors, government representatives, business executives, and members of the Swiss community.

    Ambassador Giger emphasized the strong economic and trade ties between Ghana and Switzerland, underscored by ongoing development cooperation.

    She outlined Switzerland’s new cooperation framework with Ghana for 2025 to 2028, which will focus on strengthening strategic value chains, investing in youth skills development, promoting effective decentralization, and expanding renewable energy solutions, in collaboration with the private sector.

    Representing the Ghanaian government, Minister for Roads and Highways, Francis Asenso-Boakye, lauded Ghana’s reputation as a safe and welcoming environment for foreign investors.

    He pointed out that over 55 Swiss companies, including Nestlé Ghana, Accra Brewery, and Barry Callebaut, have invested in Ghana, attracted by the country’s political stability, security, and favorable investment conditions.

    Asenso-Boakye noted that the $3 billion trade volume in 2023 reflected Switzerland’s significant trade balance in favor of Ghana.

    He also highlighted the opportunities presented by the African Continental Free Trade Area (AfCFTA), inviting more Swiss businesses to partner with Ghanaian companies to strengthen the private sector and create jobs for the youth.

    The Minister expressed gratitude to Switzerland for its longstanding financial and technical support, particularly in peace and human security cooperation. He also acknowledged Switzerland’s role as a major sponsor of the Kofi Annan International Peacekeeping Training Centre (KAIPTC) in Accra.

  • Price of cocoa futures continues to fall over predictions of rain in West Africa

    Price of cocoa futures continues to fall over predictions of rain in West Africa

    Cocoa futures declined for the third consecutive day amid forecasts of rain in West Africa, reversing a weeklong rally driven by worries about dry conditions in major producers Ivory Coast and Ghana.

    Maxar weather reports indicated that Western Ivory Coast experienced moderate to heavy rainfall on Wednesday, with light, scattered showers occurring in other areas.

    “Ivory Coast growers expect harvest to begin next month, and the amount of rain the crop receives will determine the amount and duration of the harvest,” said Mark Bowman, senior global market analyst at ADM Investor Services.

    “Producers would like to see more rainfall in the south, but that may take another week, which could leave southern regions stressed,” he cautioned.

    The most actively traded cocoa contract dropped by up to 2.4% in New York and is on track for a 2.7% decrease for the week.

    Despite this, cocoa futures have risen by more than 80% this year, largely due to concerns about dry weather, disease, and insufficient fertilizers affecting production in major growing areas. Recently, Ghana’s industry regulator reduced the country’s 2024-25 crop harvest target by 20% due to weather-related issues.

  • Pay us GHC6k for a bag of cocoa – Cocoa farmers to gov’t

    Pay us GHC6k for a bag of cocoa – Cocoa farmers to gov’t

    The Ghana National Cocoa Farmers Association is urgently calling for a significant increase in the price of cocoa for the upcoming planting season.

    The farmers are insisting on a minimum price of GH¢6,000 per tonne.

    According to the Association, anything less than this will have dire consequences for the industry, which is already struggling due to low cocoa prices in the country.

    In an interview with the media, National President of the Ghana National Cocoa Farmers Association, Stephenson Anane Boateng, emphasized that Ghana currently offers the lowest cocoa prices in the sub-region, making it increasingly difficult for farmers to thrive.

    “The various hurdles we face in cocoa production have made life very challenging for us. These concerns are not politically motivated—they are in the best interest of the farmers and the nation as a whole,” Boateng stressed. He added that the cocoa sector is facing numerous difficulties, from a lack of labor to other operational obstacles that are hampering production.

    Speaking at a farmers’ rally and press conference in Tarkwa, Boateng warned that if the government does not take swift action to support cocoa farmers, the entire sector could collapse.

    He urged the authorities to prioritize policies that would attract and retain cocoa farmers, thereby preventing a potential disaster for Ghana’s cocoa industry.

    Echoing these sentiments, Nana Thomas Boakye, who was named the Best Cocoa Farmer in the Huni Valley District, painted a bleak picture of the current state of cocoa farming.

    “Farmers who once had thriving estates are now reduced to beggars due to the lack of attention from successive governments,” he lamented. Boakye implored the government to intervene before the cocoa industry deteriorates any further.

    The Association’s demands for a price increase come at a critical time as the cocoa sector grapples with low profitability and high production costs. Farmers are hopeful that the government will heed their call and implement the necessary changes to secure the future of cocoa farming in Ghana.

  • COCOBOD to self-finance 2024/2025 cocoa season; ends 32-year loan cycle

    COCOBOD to self-finance 2024/2025 cocoa season; ends 32-year loan cycle

    The Ghana Cocoa Board (COCOBOD) has announced its decision to self-finance the upcoming 2024/2025 cocoa season, ending its reliance on an annual syndicated loan from foreign banks for the first time in 32 years.

    Speaking at a press conference in Accra, COCOBOD’s Chief Executive Officer, Joseph Boahen Aidoo, explained the rationale behind the bold decision.

    “For the first time in COCOBOD’s history, we want to wean ourselves from the offshore syndication. Since 1992, COCOBOD has always relied on external borrowing from a consortium of banks, but after 32 years, it is time we learned our lessons and took control of our finances,” Mr. Aidoo said.

    The decision so self-finance, he revealed, had been under consideration since last year, and with recent developments, COCOBOD determined that the time was ripe to move away from the syndicated loan model.

    “We were assessing the whole situation, and we concluded that we have to take a bold measure,” Mr. Aidoo stated.

    This ends the longstanding practice of securing offshore loans to purchase cocoa beans for export.

    Mr. Aidoo noted that by not accessing the offshore loan this year, the board could save around $150 million in interest payments and other costs associated with receiving a loan facility.

    While COCOBOD’s move to self-finance is expected to bring significant savings, it also raises concerns about Ghana’s foreign exchange reserves and the stability of the cedi.

    The syndicated loan which usually ranges from $1.2 billion to $1.8 billion has traditionally been a major source of foreign currency inflows for the country, and its absence could exert pressure on the Cedi’s exchange rate.

    Amid this concern, COCOBOD has revised its production target for the upcoming season, lowering it from 810,000 tonnes to 650,000 tonnes. This adjustment is due to adverse weather conditions in key cocoa-growing regions, particularly in Brong Ahafo and Western North, where unusual dryness has affected cocoa trees.

    Despite the challenges, Mr Aidoo reassured Ghanaians that the cocoa sector remains sustainable. He dismissed concerns that the industry could collapse within five years, stating that COCOBOD is implementing various initiatives to address issues like climate change, pests, diseases, and illegal mining.

  • Ghana’s cocoa sector to go extinct by 2029 – Association of Cocoa Farmers

    Ghana’s cocoa sector to go extinct by 2029 – Association of Cocoa Farmers

    The National Association of Cocoa Farmers has issued a warning that the cocoa sector could collapse within five to ten years if current challenges are not addressed by authorities.

    Stephenson Anane Boateng, President of the Association, highlighted the severe impact of illegal mining, known as galamsey, in cocoa-growing regions. He noted that this has led to significant issues such as water pollution, competition for land with illegal miners, and a decline in cocoa production.

    Boateng expressed concern that cocoa farmers are struggling to manage aging cocoa trees, weeds, pests, diseases, and falling yields, all of which have negatively affected their income and livelihoods.

    According to data from the 2022/23 season released by COCOBOD, approximately 150,000 metric tonnes of cocoa were lost due to smuggling and illegal gold mining activities. Additionally, the cocoa-swollen shoot virus devastated around 500,000 hectares of cocoa farmland.

    He criticized national leaders for failing to implement effective initiatives to tackle these challenges, questioning why cocoa farmers are not being empowered to help resolve the crisis.

    Although the government claims to have introduced measures to address production issues, such as a farm rehabilitation program and collaborations with security agencies to combat smuggling, the Association insists that successive governments have not adequately addressed their concerns.

    “All the various sectors get the needed support and resources to enhance their work. However, the cocoa sector has been ignored. The situation has made cocoa farming unattractive, and our young people are not interested in the sector. They accuse us of selling our lands to illegal miners, but that is false.

    “The cocoa sector is no longer thriving. My prediction is that in the next five years, we will have no cocoa sector to boast of. If we are lucky, it will last for the next ten years.

    “The youth of today have all joined galamsey activities. When we raise these issues, the CEO of COCOBOD, Joseph Boahen Aidoo, will rubbish them. We have a crisis at hand, and it is our collective duty as Ghanaians to talk and have the issues addressed.”

    On the investment of Ghc942 million on farms, he shot it down, stressing that “COCOBOD keeps making losses. Read the Auditor General’s report and let me know if, indeed, they have made any investments in farms, as he claimed.”

    He told host Kwabena Agyapong on Frontline on Rainbow Radio 87.5FM that “”Ghana is now controlled by politicians, and when important issues are raised, they are not addressed.”

    “They come in to make money, and when they leave, they and their families enjoy themselves and create problems for us. But as Ghanaians, we have to rise and speak up and have them resolve these challenges.”

  • COCOBOD expects 800,000 metric tons of cocoa in 2024/25 season after GHC943m investment

    COCOBOD expects 800,000 metric tons of cocoa in 2024/25 season after GHC943m investment

    The Ghana Cocoa Board (COCOBOD) is projecting a significant boost in cocoa production for the 2024/25 season, anticipating over 800,000 metric tons, following a substantial GHC943 million investment aimed at rehabilitating aged and disease-ridden cocoa farms.

    This effort is part of a broader strategy to revive the cocoa sector and support the livelihoods of farmers.

    COCOBOD’s Chief Executive Officer, Joseph Boahen Aidoo, revealed that the nearly billion-cedi investment made last year was crucial to restoring cocoa farms affected by the devastating swollen shoot virus disease (CSSVD) and aging trees.

    These initiatives, he explained, are essential to sustaining the country’s cocoa output and ensuring the welfare of farmers.

    In an interview, Mr. Aidoo and his Deputy CEO in charge of Finance and Administration, Ray Ankrah, addressed concerns raised in the media regarding COCOBOD’s rising administrative expenses, which reportedly hit GH¢3.4 billion last year.

    The CEO clarified that this figure includes the substantial funds allocated to rehabilitate cocoa farms, countering claims that the money was solely spent on administrative overhead.

    “The money was used to fund the cutting down of diseased and aged farms, nurse, and plant seedlings as well as maintain the rehabilitated farms before handing them over to farmers across the country,” Mr. Aidoo stated. He stressed that these strategic investments were necessary and justified the increase in administrative costs.

    Mr. Ankrah further elaborated that a significant portion of the administrative costs was related to the GHC943 million expenditure on productivity enhancement programs (PEPs).

    He noted that this expenditure, which was supported by a loan from the African Development Bank (AfDB), was a one-time cost that played a pivotal role in sustaining the livelihoods of affected farmers and boosting future cocoa production.

    The Deputy CEO dismissed claims that the administrative expenses were excessive, stating, “The GH¢943 million was actually used to rehabilitate diseased and moribund farms to sustain the livelihood of the affected farmers and increase cocoa production, starting with the 2024/25 season.”

    He added that, excluding this one-off expenditure, COCOBOD’s administrative costs had actually decreased in 2023.

    Addressing the broader impact of the swollen shoot virus disease, Mr. Aidoo emphasized that the rehabilitation of cocoa farms is critical for maintaining the sector’s viability. The disease, which significantly reduces cocoa yields before killing the trees, has been a major factor in the recent decline in national cocoa production.

    COCOBOD’s efforts, he said, are vital to preventing further loss of productive land and ensuring the continued benefits derived from cocoa farming.

    Mr. Aidoo also highlighted the board’s commitment to supporting farmers with adequate and timely inputs for the upcoming season, including hand pollination, pruning, and irrigation initiatives.

    These efforts are not only aimed at increasing production but also at making cocoa farming more appealing to the younger generation, encouraging more youth to enter the sector.

    On the financial front, Mr. Ankrah pointed to COCOBOD’s successful turnaround in 2023, where the board recorded a profit of GH¢2.3 billion, a significant recovery from the GH¢4.2 billion loss in 2022.

    He attributed this to prudent financial management and ongoing efforts to enhance cocoa production and profitability, despite the challenges posed by the COVID-19 pandemic.

    In conclusion, Mr. Aidoo assured farmers of COCOBOD’s continued commitment to implementing better policies and programs in the upcoming season, in line with the government’s goals of improving farmer livelihoods and sustaining the country’s cocoa production.

  • Liabilities in cocoa and energy sectors could affect Ghana’s “modest recovery” – World Bank

    Liabilities in cocoa and energy sectors could affect Ghana’s “modest recovery” – World Bank

    The World Bank’s latest Ghana Economic Update indicates that while the country has made “steady progress” towards economic stabilization, significant liabilities in the cocoa and energy sectors could pose risks to Ghana’s “modest recovery.”

    Released on Monday, July 22, the eighth edition of the report attributes the recent economic improvement to a firm monetary policy stance, comprehensive debt restructuring, and a series of structural reforms aimed at supporting long-term growth.

    Despite this, the report points out that challenges such as financial sector stress and contingent liabilities in critical sectors like cocoa and energy could impact the economy’s stability.

    Mr. Stefano Curto, Lead Economist for Ghana, Liberia, and Sierra Leone at the World Bank, noted that the macroeconomic situation has seen considerable improvement over the past year.

    “Growth in 2023 was more resilient than projected, reaching 2.9 percent. Ghana has made commendable strides on fiscal consolidation,” Curto stated.

    However, he emphasized that the sustainability of these efforts is contingent on enhancing the country’s tax revenue while minimizing the impact on growth and the vulnerable populations.

    The report stresses the need for robust measures to enhance tax revenue mobilization and the full implementation of policies related to the ongoing $3 billion International Monetary Fund (IMF) loan-support program.

    Mr. Curto recommended streamlining the complexities associated with personal income tax, Value Added Tax (VAT), excise duty, and corporate income tax, as well as rationalizing tax exemptions.

    Economist Mr. Kwabena Gyan Kwakye projected a 3.1 percent growth for Ghana by the end of 2024, with the potential for economic growth to reach 5 percent by 2025 if stabilization efforts are fully implemented. He also called for continued efforts in expenditure management to sustain economic progress.

    Dr. Alex Ampaabeng, Deputy Finance Minister, acknowledged the challenges in the country’s tax administration system but assured that reforms were underway to enhance domestic revenue mobilization.

    He highlighted the National Revenue Policy and a medium-term revenue strategy designed to adapt to the evolving business landscape.

    Dr. Ampaabeng mentioned that the Ministry of Finance is collaborating with the Ghana Revenue Authority (GRA) on data cleansing to better identify and engage taxpayers. Currently, Ghana’s database includes approximately 7.4 million taxpayers, with 1.9 million active and 5.4 million inactive.

  • Ghana’s cocoa delivery delay puts trading houses at risk of $1bn loss

    Ghana’s cocoa delivery delay puts trading houses at risk of $1bn loss

    Major trading firms face potential losses of approximately $1 billion due to Ghana’s failure to deliver cocoa beans this year.

    According to sources from Citi Business News, this issue has prompted traders to close out short positions as cocoa prices rise.

    Ghana is expected to postpone the delivery of up to 350,000 metric tons of cocoa beans this season, which is nearly half of the previous amount sold.

    This delay could result in around $1 billion in total losses for cocoa traders and processors, as reported by Citi Business News sources.

    Large trading companies such as Cargill, Olam, and Barry Callebaut use futures markets to secure cocoa prices before the beans are sold.

    They purchase beans months ahead of time, aiming to resell at a profit. To guard against potential price drops, they also make bets on falling prices in the futures market.

    This strategy is ineffective if there is a delay in cocoa delivery during a market uptrend.

    Sources from Citi Business News indicate that traders had to repurchase their price-fall bets at significantly higher prices, resulting in substantial losses.

    Traders still anticipate receiving their cocoa and have entered new short positions for delivery in May 2025 at approximately $7,000 per ton.

    Nevertheless, they are expected to incur losses of around $4,000 per ton if they receive the cocoa at $3,000 per ton.

    The cocoa market, already facing its third consecutive year of deficit, has experienced a doubling in prices this year.

    Traders might increase prices for chocolate manufacturers to recoup some losses, but these companies may struggle to pass these costs onto consumers who are already buying less chocolate.

    Market liquidity has also diminished, as exchanges require more cash collateral for hedges, leading to greater price volatility.

    This situation has significantly slowed down cocoa trading, impacting both the industry and consumers.

  • Ghana’s cocoa production at 50% of average as harvest nears end

    Ghana’s cocoa production at 50% of average as harvest nears end

    At the end of June, Ghana’s cocoa production reached 429,323 metric tons, representing under 55% of the expected seasonal yield, as reported by the marketing board, COCOBOD.

    Global cocoa prices have surged since the beginning of the year due to poor harvests in Ghana and Ivory Coast, the latter being the largest producer. These two countries together supply approximately 60% of the world’s cocoa.

    Ghana’s primary cocoa harvest is generally completed by the end of June, and the COCOBOD figures provide an approximate reflection of this season’s main crop yield for the world’s second-largest producer.

    Both major cocoa producers have faced challenges from adverse weather and tree diseases, while Ghana’s production has also been affected by informal mining and smuggling activities.

    The data from COCOBOD, as reported by Reuters, does not account for any cocoa production that may have been illegally exported.

    On June 21, COCOBOD announced the commencement of Ghana’s light crop season, which typically contributes less than 10% of the annual cocoa yield.

    Over the past five seasons, Ghana’s average annual cocoa production has been 800,000 tons, with a peak of over 1 million tons in 2020/21. However, the COCOBOD data indicates a decline over the past three seasons.

    The marketing board did not provide equivalent production figures for the two previous seasons up to June. Nonetheless, full season outputs were 683,269 tons in 2021/22 and 656,140 tons the following season.

    The decline in production has been most significant in Ghana’s top cocoa-growing regions: Ashanti and Western South. According to the data, Ashanti produced 103,976 tons by the end of June, compared to 160,855 tons for the full season last year, while Western South yielded 96,810 tons by June, down from 152,277 tons last season.

    Nana Kwesi Barning, coordinator of the Ghana Civil Society Cocoa Platform, attributed the production decline in the two regions primarily to swollen shoot disease (CSSVD) and artisanal gold mining, locally known as galamsey.

    “Galamsey and CSSVD are massive in there, especially the galamsey, per our analysis,” he told Reuters.

    Nana Johnson Mensah Kagya, a major farmer in the Western South region with around 80 hectares of plantations, said over half of his cocoa had to be cut down and replanted due to swollen shoot.

    And illegal gold mining, he said, is drawing young men away from cocoa farming.

    “If galamsey continues to exist, cocoa has no future. Because of the galamsey, you will not get anybody to work on the cocoa farm,” Kagya said.

    The Western North and Western South regions, situated near the border with Ivory Coast, along with the eastern Volta/Oti region adjacent to Togo, have experienced a decline in production due to their susceptibility to smuggling over the past three seasons.

    Ghana and Ivory Coast both sell their cocoa harvests in advance, but the significant shortfall in production this year has left Ghana’s Cocobod unable to meet its delivery commitments to exporters and traders.

    Last month, Reuters reported that Ghana was considering postponing the delivery of up to 350,000 tons of cocoa beans to the next season; however, COCOBOD disputed the extent of these contract deferrals.

    The CEO of Cocobod has predicted that cocoa production will recover to over 800,000 tons in the upcoming season starting in October, but industry experts and analysts have expressed skepticism about the feasibility of this target.

  • Ghana’s cocoa production declines, 429,323 metric tons recorded in June – Report

    Ghana’s cocoa production declines, 429,323 metric tons recorded in June – Report

    Ghana’s cocoa production for the season ending in June has been reported at 429,323 metric tons, marking a significant decline from its average seasonal output, according to data released by the Ghana Cocoa Board (Cocobod) and reported by Reuters.

    This figure underscores the challenges faced by the world’s second-largest cocoa producer due to adverse weather conditions, prevalent tree diseases, and illicit activities.

    The latest cocoa harvests from Ghana and Ivory Coast, the top global producers, have contributed to rising cocoa prices worldwide since the beginning of the year. Together, these nations typically supply about 60% of the global cocoa market. The reduced production from Ghana highlights a critical issue affecting global cocoa supply chains.

    Ghana’s cocoa sector has been adversely affected by adverse weather patterns and diseases such as Swollen Shoot Disease (CSSVD). Moreover, illegal artisanal gold mining, known locally as galamsey, has posed significant challenges by damaging cocoa farms and diverting labor away from agricultural activities. These factors have particularly impacted regions like Ashanti and Western South, traditionally key contributors to Ghana’s cocoa output.

    By the end of June, the Ashanti region produced 103,976 metric tons of cocoa beans, a notable decrease from the previous season’s 160,855 tons.

    Similarly, the Western South region recorded 96,810 tons, down from 152,277 tons in the preceding season. The Western North and Western South regions, as well as the Volta/Oti region bordering Togo, remain vulnerable to smuggling activities that further hinder cocoa production.

    The production shortfall has also affected Ghana’s ability to meet its contractual obligations with international traders and exporters. Cocobod reportedly faces difficulties in fulfilling its forward sales contracts, potentially necessitating delays in delivering up to 350,000 tons of cocoa beans to the next season.

    While Cocobod remains optimistic about a rebound in cocoa output to over 800,000 tons for the upcoming season starting in October, industry analysts caution that achieving this target may prove challenging amid ongoing production constraints.

  • World Bank supports COCOBOD’s cocoa rehabilitation with $100m

    World Bank supports COCOBOD’s cocoa rehabilitation with $100m

    The Ghana Cocoa Board (COCOBOD) has successfully obtained a US$100 million financing facility from the World Bank, aimed at rehabilitating aged cocoa farms across six key cocoa-growing districts in the country.

    The project will cover Assin Fosu, New Edubiase, Nkawkaw, and Juaso districts.

    This four-year initiative focuses on rejuvenating cocoa farms by cutting down trees that have lived for over 20 years, preparing the land, and providing necessary planting materials such as seedlings and plantain suckers.

    The Chief Executive Officer of COCOBOD, Mr. Joseph Boahen Aidoo, shared these details during a media interaction on July 4, 2024, as part of a field visit to farms in Assin Fosu in the Central Region.

    During the visit, aimed at evaluating the efforts of extension officers and government interventions, Mr. Boahen Aidoo explained that while the trees to be cut down are not diseased, they have outlived their productive lifespan, with some exceeding 30 years and becoming unproductive.

    “Once cocoa hits 20 years and above, it has spent its life span, and from that stage, you realise that it bears no fruits, no pods, and the flowers don’t come, yet the farmer would be maintaining such a farm, and this is not productive,” he noted.

    The rehabilitation project is expected to rejuvenate these farms, thereby boosting cocoa production. COCOBOD will support farmers with plantain suckers and labor for planting, along with providing extension officers to educate and assist farmers in managing their farms for optimal yields.

    Mr. Boahen Aidoo emphasized the necessity of comprehensive support, noting that simply providing seedlings would not be sufficient for the farmers to achieve the desired outcomes.

    Highlighting the scale of the project, he mentioned an example where farmers were working on a 30-hectare farm.

    “If you cut the trees from this 30-hectare land, and you want the farmer to provide plantain suckers within one year, they cannot. That’s why we’re supporting them,” he explained. He also referenced a similar project executed with support from the African Development Bank (AfDB), which aimed to combat the Cocoa Swollen Shoot Virus Disease (CSSVD).

    During the visit, farmers urged the government to expedite the construction of roads in cocoa-growing areas to facilitate the transport of produce and reduce post-harvest losses.

    They also called for more extension officers, acknowledging the significant help provided by these officers in their farming activities.

    Nana Kweku Appotoi IV, Aboabohene of Assin Nyankomase, lamented the poor road conditions in cocoa-growing communities and urged COCOBOD to lead efforts in improving the infrastructure.

    Responding to these concerns, Mr. Boahen Aidoo assured farmers that the government would allocate funds to improve roads in cocoa-growing areas following recent increases in cocoa prices.

    He advised farmers on best practices, such as avoiding cocoa cultivation in sandy and clay soils, not burning weeds, and using tree branches as mulch rather than selling them as firewood.

    He also cautioned against the use of harmful weedicides and materials like poultry manure, which can damage soil health and reduce crop yields.

    Mr. Boahen Aidoo highlighted COCOBOD’s efforts to equip farmers with modern tools, noting that since 2020, they had procured about 100,000 motorized slashers and pruners to help clear cocoa farms and increase production. He encouraged farmers to access these tools from various district offices.

    Additionally, he pointed out that COCOBOD had improved the extension officer-to-farmer ratio from one officer per 3,000 farmers to one officer per 600 farmers, nearly meeting the Food and Agriculture Organization’s (FAO) standard of one officer per 500 farmers.

  • Cocoa output to surpass supply by 303,000 metric tons from October – Marex Group

    Cocoa output to surpass supply by 303,000 metric tons from October – Marex Group

    A commodities broker, Marex Group, predicts that a recovery in cocoa production among the world’s largest growers will bring an end to the massive bean shortage that drove prices to record highs this year.

    The upcoming 2024-25 season, starting in October, is anticipated to see cocoa output surpass supplies by 303,000 metric tons, marking the first surplus year after three consecutive seasons of deficits, according to Marex.

    Over the past year, cocoa futures in New York have more than doubled due to severe supply shortages depleting global stockpiles.

    This surge has attracted attention from Pierre Andurand, a renowned energy trader who shifted his focus to cocoa while maintaining a bullish outlook.

    Andurand Capital Management forecasts that cocoa stockpiles on both New York and London futures exchanges will be depleted by year-end, projecting a production deficit of 650,000 to 700,000 tons for this season.

    This estimate surpasses the International Cocoa Organization’s forecast of a 439,000-ton shortage, influenced by adverse weather and disease affecting crops in Ivory Coast and Ghana. Marex estimates this season’s deficit at 475,000 tons.

    Looking ahead to the next season, Marex anticipates a rebound in output driven by improved weather conditions in West Africa, the world’s primary cocoa-growing region.

    “The development of new the crop is looking strong,” said Jonathan Parkman, head of agricultural sales at Marex.

    Improved rainfall patterns in West Africa have already contributed to a decline in cocoa prices from their record highs earlier this year. Futures in New York have retreated by over 30% from their peak in April, yet prices remain up nearly 85% in 2024.

    Marex anticipates weak cocoa demand going forward. Despite an anticipated recovery in bean supply next season, the cocoa grindings, which denote the amount of beans processed by the industry, are expected to grow only moderately after a downturn this year.

    “The main effect of extreme higher cocoa prices will manifest in lower demand over the next six months,” Parkman said.

  • Ghana rolls out new strategy for sustainable cocoa cultivation

    Ghana rolls out new strategy for sustainable cocoa cultivation

    Ghana has launched a new initiative in partnership with the United Nations Development Programme (UNDP), the Forestry Commission, and the Ghana Cocoa Board (COCOBOD), supported by funding from the Swiss State Secretariat for Economic Affairs (SECO).

    This collaboration marks Ghana’s participation in the third phase of the Green Commodities Programme (III), which builds on progress made since 2010 toward sustainable agricultural production. The initiative, titled Effective Collaborative Action for Sustainable Commodity Production and Trade, aims to drive meaningful change and promote environmentally friendly practices within Ghana’s agricultural sector.

    Specifically, the project seeks to enhance governance within Hotspot Intervention Areas (HIA) and strengthen stakeholder effectiveness to address issues like deforestation, forest degradation, farm resilience, cocoa farmers’ incomes, and poverty reduction.

    This initiative is aligned with the Ghana Cocoa Forest REDD+ Programme (GCFRP) HIA structure, facilitating dialogue and collaborative action among cocoa sector stakeholders through a multi-stakeholder platform. Originally launched in 2015 focusing on Peru and Indonesia, the Green Commodities Programme now extends to Brazil, Malaysia, and Ghana (cocoa).

    In Ghana, GCP III targets the vital cocoa production landscape, crucial for the country’s economy and environmental sustainability. Ayirebi Frimpong, Forest Specialist at UNDP Ghana, expressed enthusiasm for the initiative, emphasizing its role in enhancing sustainable cocoa production through strengthened coordination mechanisms at sub-national levels.

    The initiative responds to the 2021 Glasgow World Leaders Declaration on Forests and Land Use, aiming to halt deforestation by 2030. GCP Phase III emphasizes multi-stakeholder collaboration to enhance national, social, and environmental performance in agricultural commodity sectors.

    This strategic partnership aims to promote sustainable agriculture practices, support smallholder farmers, and assist Ghana in achieving its 2030 Agenda climate goals while maintaining its status as a leading cocoa producer.

    Melissa Salazar, Programme Specialist at UNDP Food and Agricultural Commodity Systems, highlighted the critical need to address agricultural growth challenges, advocating for policies and practices that ensure a sustainable future during the national inception workshop.

    This initiative represents a significant step in Ghana’s commitment to sustainable cocoa production. Leveraging the Green Commodities Programme, Ghana aims to create a collaborative environment supporting smallholder farmers and enhancing agricultural practices.

    The outcomes of this partnership are expected to contribute significantly to Ghana’s economic and environmental objectives, serving as a model for sustainable agriculture globally.

  • Ghana records over $500m decline in cocoa revenue due to galamsey, others

    Ghana records over $500m decline in cocoa revenue due to galamsey, others

    Ghana’s cocoa industry has suffered a significant financial setback in the first quarter of 2024, with revenue dropping by over $500 million.

    This alarming decline has been attributed to a combination of illegal mining activities, adverse weather conditions, the Cocoa Swollen Shoot Virus Disease (CSSVD), and rampant smuggling.

    Fiifi Boafo, Head of Public Affairs at COCOBOD, detailed the key factors contributing to this downturn during an interview on JoyNews Desk. Boafo highlighted the severe impact of illegal mining activities on cocoa production.

    “Illegal mining activities are cutting off farmers from their farms,” he stated, emphasizing how these illicit activities disrupt cocoa harvesting.

    The environmental consequences of illegal mining have also been detrimental. Polluted water bodies, essential for irrigating cocoa farms, have compounded the challenges faced by farmers. “Illegal mining activities are polluting water bodies needed to irrigate cocoa farms,” Boafo noted.

    Adverse weather conditions have further exacerbated the situation. The El Niño phenomenon, which caused warmer and drier conditions, has led to lower cocoa yields. “The El Niño phenomenon caused warmer and drier conditions, leading to lower yields,” Boafo explained.

    Public Affairs Manager of Cocobod

    Adding to these woes is the Cocoa Swollen Shoot Virus Disease (CSSVD), which has decimated over 500,000 hectares of cocoa farms. Boafo underscored the scale of this problem, noting, “Over $200 million was spent to rehabilitate farms affected by Cocoa Swollen Shoot Virus Disease.”

    In response to these challenges, COCOBOD has implemented several measures. Legal actions against smugglers and illegal miners are underway, with “five individuals already jailed and several cases pending in court,” Boafo disclosed. COCOBOD is also providing financial support to cocoa farmers by offering higher payments for their produce. “We are motivating cocoa farmers by paying them more for their produce,” Boafo stated.

    Additionally, COCOBOD’s legal team is assisting farmers in prosecuting miners who interfere with their farms. “Our legal team is helping farmers who seek to prosecute miners who interfere with the usage of their farms,” Boafo said.

    Despite the production shortfall, Boafo remains optimistic about COCOBOD’s ability to secure necessary funding. “Our production shortfall would not affect our chances of accessing the cocoa syndicated loan,” he assured, indicating COCOBOD’s confidence in maintaining financial stability.

    The cocoa industry’s challenges highlight the urgent need for sustainable solutions to protect and support Ghana’s cocoa farmers. With continued efforts and strategic interventions, COCOBOD aims to mitigate these issues and restore the industry’s economic health.

  • Decline in Ghana’s cocoa export earnings draws deep concern

    Decline in Ghana’s cocoa export earnings draws deep concern

    The latest trade bulleting from the Ghana Statistical Service (GSS) paints a concerning picture of the country’s cocoa export earnings.

    In the first quarter (Q1) of this year, cocoa product export values saw a significant decline, plummeting to just US$592.2 million compared to the same period in 2023. This represents a substantial reduction in export revenue compared to the three-year average.

    The decline is particularly alarming given that Q1 usually marks a peak in cocoa product exports.

    A significant drop in cocoa bean exports during the past two years’ Q3 periods has been identified as a major contributing factor to this trend.

    The Graphic Business expresses deep concern over this situation, as cocoa plays a crucial role as the country’s primary source of foreign exchange earnings.

    Various factors, including illegal mining (galamsey) and diseases like swollen shoot disease, have been cited as reasons for the decline in cocoa production.

    The government’s failure to address the galamsey issue in cocoa-growing regions is perplexing and raises alarming questions about the country’s future.

    Presently, the Ghana Cocoa Board (COCOBOD) faces significant debt due to inadequate cocoa production to offset syndicated funds for crop purchase.

    The situation is dire, and urgent action is needed to address the galamsey issue and protect Ghana’s cocoa industry.

  • Cocobod had no money when I took over as CEO – Joseph Boahen

    Cocobod had no money when I took over as CEO – Joseph Boahen

    The CEO of the Ghana Cocoa Board, Joseph Boahen Aidoo, has revealed the substantial financial hurdles he confronted upon assuming office in January 2017.

    During an interview on Joy FM’s Super Morning Show, Mr. Aidoo disclosed that despite the previous administration securing $1.8 billion in 2016, there were no remaining funds when he assumed leadership of Cocobod.

    He explained that the funds had been utilized for purchasing cocoa and covering operational expenses.

    “They bought about 600,000 metric tonnes before we came in. With cocoa, the peak harvest period is October, November, December, and January. So within the first quarter of the season, from October to December 2016, the previous administration bought over 600,000 metric tonnes.

    “When we assumed office, there was no money, meanwhile, we had to buy cocoa till the end of the season from January to September,” he said.

    Upon taking office, Mr. Aidoo observed that Cocobod was confronted with the formidable challenge of continuing cocoa purchases without any funds.

    He indicated that the most viable solution was for Cocobod to seek help from the Bank of Ghana.

    “We were forced to go to the Bank of Ghana to borrow. Within that period, we bought over 300,000 metric tonnes and we had to pay the farmers, we had to pay for haulage, the buyer’s margin, and operational costs.

    “We sought help from the Bank of Ghana who became an intermediary between the Board and the consolidated banks and we got over GH₵2 billion,”he explained.

    Ghana’s cocoa industry has grappled with adverse weather conditions, bean diseases, and illegal gold mining, which often displaces cocoa farms.

    Additionally, Ghanaian farmers have been smuggling more beans to neighboring countries to capitalize on higher prices, further depleting the available crop for domestic delivery.

    Reports indicate that Ghana, the world’s second-largest cocoa producer, is contemplating delaying the delivery of up to 350,000 tons of beans to the next season due to poor crops.

    Consequently, chocolate makers worldwide are increasing prices for consumers in response to cocoa prices doubling this year, driven by a third consecutive year of poor harvests in Ghana and Ivory Coast, which together account for 60% of global production.

  • Local processing companies likely to shut down as shortage of cocoa products looms

    Local processing companies likely to shut down as shortage of cocoa products looms

    The cocoa processing industry in Ghana is grappling with significant operational challenges due to a decreased supply of cocoa beans, resulting from recent low cocoa production and escalating cocoa prices on the international market.

    This situation has strained many local cocoa processing firms, forcing them to alter their business operations to minimize expenses amid squeezed profit margins, according to reports from Citi Business News.

    The industry is facing a looming crisis as local cocoa processing companies are hit hard by the low yields of cocoa beans, leading to a substantial reduction in production levels.

    The limited availability of cocoa beans has compelled numerous firms to cut back on production, resulting in the underutilization of machinery, inefficiencies, and higher per-unit costs. The disruption in processing schedules is also causing operational instability.

    Confectionery items such as chocolates, spreads, and pebbles produced by these companies have experienced a significant decline of 30 percent due to their inability to increase the processing of cocoa beans. Processed cocoa beans production has fallen by 50 percent, with the production of cocoa liquor, butter, and powder dropping from 3,000 to 1,400 metric tonnes.

    The decline in production is occurring at a time when the Cocoa Processing Company has already recorded a US$ 6 million loss in the first quarter of 2024. The downturn in cocoa production has been attributed to the detrimental effects of illegal mining, adverse weather conditions, and the swollen shoot disease. Additionally, some farmers are exchanging large acres of cocoa farms for as low as GHS 50,000, and the smuggling of cocoa to neighboring countries remains a significant challenge.

    Ghana’s cocoa output for the 2023/24 season is projected to be nearly 40% below the target of 820,000 metric tonnes, with global cocoa prices reaching US$ 10,000 per tonne this year. In the first four months of 2024, Ghana’s trade balance narrowed as cocoa exports dropped, with a year-on-year comparison showing cocoa output falling by about 50%.

    The repercussions of this situation are being felt by consumers, with chocolate lovers in Ghana experiencing a sharp increase in prices. For instance, the price of a 100g bar of Kingsbite chocolate has risen to over GHS 20, up from GHS 14 a few months ago. The upward price adjustments are seen as an attempt by the Cocoa Processing Company to raise revenue and mitigate financial losses. However, consumers are shifting to cheaper alternatives, impacting the sales volumes of other businesses which may not be able to meet the demand.

    Other cocoa processing companies, including Niche, Chocomac, and Cargill, are facing varying degrees of operational bottlenecks due to the scarcity of cocoa beans. Should this situation persist, it could lead to massive job losses and the potential shutdown of some cocoa processing companies.

    The decline in cocoa production has not only affected the processing industry but also Ghana’s overall economic outlook, given the importance of cocoa as a major export commodity. Efforts to address the challenges within the sector are crucial to ensuring the sustainability and growth of the cocoa processing industry in Ghana.

  • Bawumia announces rollout of cocoa farmers’ pension scheme when he becomes president

    Bawumia announces rollout of cocoa farmers’ pension scheme when he becomes president

    Dr. Mahamudu Bawumia, the presidential candidate of the New Patriotic Party (NPP), has declared that the pension scheme for cocoa farmers will be launched this year.

    During his visit to Kumasi as part of a three-day tour of the Ashanti region, Dr. Bawumia conveyed to the farmers that the database of cocoa farmers has been compiled, and the Ghana Cocoa Board (COCBOD) has confirmed the commencement of the scheme within the current year.

    The objective of the pension scheme is to furnish cocoa farmers with retirement benefits, ensuring financial stability during their later years.

    Dr. Bawumia also addressed the necessity for the government to reassess the cocoa spraying program to optimize its benefits for the farmers and enhance the distribution of agricultural inputs.

    Furthermore, he highlighted that the government has been guaranteeing that farmers receive 78 percent of the global cocoa price, underscoring the administration’s dedication to enabling farmers to reap the rewards of their labor.

    At the gathering, several cocoa farmers advocated for further increases in cocoa prices and urged the government to escalate its efforts against illegal mining (galamsey) activities, which are causing harm to their farms.

  • Cocoa farmers battle against illegal mining operations in Ellembelle

    Cocoa farmers battle against illegal mining operations in Ellembelle

    On Saturday, June 1, a group called Concerned Cocoa Farmers (CCF) from the Ellembelle District in the Western Region took to the streets to protest against the rampant environmental destruction caused by illegal mining activities (galamsey) in their district.

    The farmers marched to one of the illegal mining sites in Sendu to voice their dissatisfaction and condemnation of the illegal miners’ actions.

    They argued that the damage being done to their cocoa farms and water bodies by these illicit activities is incalculable.

    Benjamin Azachie, the leader of Concerned Cocoa Farmers, handed their petition to Emmanuel Armah-Kofi Buah, the Member of Parliament for the Ellembelle constituency.

    He urged the MP to leverage his position and the Parliament to halt the aggressive takeover of cocoa farms by illegal miners (galamsey operators) in the region.

    Azachie highlighted that illegal mining continues to devastate their investments and pollute the clean water bodies in the affected areas of the District.

    In an interview with journalists, Grace Amihere, one of the affected residents, expressed her frustration over the severe pollution in the area.

    “I’m demonstrating because of the pollution of our water bodies and destruction of cocoa farms. How are we going to feed our children with the destruction of our farms? The operators suddenly came without prior notice to us,” she lamented.

    “They tried to pay off my brother to mine in his cocoa farm, but because he refused to accept their money, they have destroyed half of the farm. Why are they doing this to us? This is what worries us. President Akufo-Addo must address this concern. Right now, farmers are not getting water to drink,” she added.

    Another affected resident, Ama Amihere, also claimed, “They have destroyed rubber farms and also cheated the farmers after forcefully taking their farms. So, we are pleading with the government that what is happening is not lawful.”

    Following the invasion of “galamsey” activities in the Nyamebekyere-Sendu section of the Ellembelle District, the once-clean River Fia has become contaminated.

    Nicholas Kofi Mawuli, the Assembly Member for the Nyamebekyere Electoral Area, stated his reservations regarding the employment of Chinese in the front line and expressed his great concern about the detrimental development.

    “They are fronting in engaging in the illegalities in this area,” he said.

    After over an hour of protesting at the Sendu galamsey site, the Concerned Cocoa Farmers handed their petition to Emmanuel Armah-Kofi Buah, the MP for Ellembelle.

    Armah-Kofi Buah assured the farmers that he would take their concerns to the Parliament of Ghana for resolution.

    However, he encouraged the affected residents to speak out loudly against illegal mining activities in the area.

    He emphasized that combating illegal mining is a collective responsibility, and everyone must work together to address the issue.

  • Ghana’s cocoa exports dropped sharply in the first quarter of 2024 – GSS report

    Ghana’s cocoa exports dropped sharply in the first quarter of 2024 – GSS report

    Cocoa exports saw a significant decline in the first quarter of 2024, dampening the growth of the country’s trade surplus, according to new data.

    Although the surplus is expanding nominally, this growth is primarily driven by rising prices rather than increased export volumes or economic growth.

    Data from the Ghana Statistical Service (GSS) indicate that the export value of cocoa products in Q1 2024 dropped to US$592.2 million, a sharp fall from the average of US$825.8 million during the same period last year and the previous two opening quarters.

    This represents the lowest quarterly cocoa export value for Ghana, the second-largest producer, since 2021.

    Cocoa Board (Cocobod) announced on March 25 that the 2023/24 cocoa harvest in Ghana would be only 422,500 to 425,000 metric tonnes (MT), half the country’s initial forecast and a 22-year low, due to extreme weather and disease affecting the cocoa crop.

    Concerns about the West African mid-crop, the smaller of the two annual harvests, are also causing tightness in global cocoa supplies. Projections for Ghana’s mid-crop, starting in July, have been reduced to 25,000 MT from an earlier estimate of 150,000 MT.

    Despite the slump in cocoa exports, Ghana posted a Q1 2024 trade surplus of GH¢11.5 billion (US$1.35 billion), more than double the GH¢4.5 billion surplus a year earlier.

    However, GSS officials warned that the positive trade figures mask an underlying lack of real trade growth when price increases are taken into account.

    “In real terms, our trade value in Q1 2024 was just GH¢47billion after discounting price effects – less than half the nominal GH¢107.6billion figure,” Professor Samuel Kobina Annim, Government Statistician, said at the data release.

    “About GH¢59billion of our nominal trade value was from price changes alone,” he added.

    The diverging real and nominal trade trajectories reflect a new import and export price index launched by GSS.

    It shows general export prices surged 20.4 percent between Q1 2023 and Q1 2024, while import prices jumped 11.5 percent.

    Prices for key commodities like gold, cocoa and fuel have uptrended in the past year amid supply shocks and currency fluctuations.

    After adjusting for those price swings, real trade volumes increased just 0.6 times from Q1 2021 to Q1 2024 – paling in comparison to the 2.4-fold nominal spike, data showed.

    Trade officials acknowledged the trend of price-driven, not output-driven, trade growth is concerning.

    “If our exports are mainly driven by price changes, it means in real terms our trade volumes aren’t really growing – and that’s not what we want. We want real output and diversification improving our trade, not just prices,” Prof. Annim remarked.

    Overall nominal 2023 trade surplus stood at GH¢5.3billion, rebounding from a GH¢4.8billion deficit in 2022 when mineral fuels and oils were a top import.

    But again, real trade output barely budged – notching a 0.3 percent year-over-year decline even as nominal trade grew 30.2 percent.

    Anchoring the Q1 2024 real trade report is the sharp 35 percent year-over-year cocoa export drop, extending a downtrend that saw quarterly cocoa shipments fall from around US$895million in the past three years’ opening periods to just US$585million this year.

    Cocoa’s declining share of exports, dipping from over 20 percent to 12.1 percent year-on-year, comes as gold consolidates its dominance – its export contribution surging from 40 percent to 50 percent of the total. Officials pledged to “minimise the vulnerabilities” leading to cocoa’s deterioration to safeguard a key income source.