Ghana’s cocoa sales fall despite high bean production due to political changes [World News]

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Foodcom Experts
08.01.2025
3 min reading
Ghana’s cocoa sales fall despite high bean production due to political changes [World News]
Summary
Table of contents
  • After a disastrous harvest in 2024, cocoa production in West African countries is increasing.
  • In Ghana, however, there are problems with the sale of the beans.
  • The cause is uncertainty about the future of the cocoa sector and delays in payments and government funding.
  • Structural changes and the December presidential elections are at the root of the problem.
  • The threat to Ghana is the strengthening of smuggling and the loss of its position as a global cocoa leader.

Ghana’s cocoa situation – sales problems and risk of smuggling

Last year, cocoa prices reached record high levels due to poor harvests in Ghana and Côte d’Ivoire, the world’s largest cocoa producers. The cocoa market is expected to rebound this year and strengthen the sector in the global market. Prices have been rising again since mid-December, but forecasts point to potential supply disruptions and Ghana’s limited ability to capitalise on the product.

Although Ghana is already seeing an increase in cocoa production, a new problem has arisen – with the sale of the beans. Political changes are introducing uncertainty and limiting the purchase of cocoa. Farmers are struggling to find reliable buyers and cocoa beans are hoarded on plantations. In addition, the discrepancy between the official market price of cocoa in Ghana and the much higher world prices continues to grow. Farmers and buyers are concerned about the increased risk of smuggled beans and a repeat of last season, when Ghana lost a third of its production to smuggling.

The political situation in Ghana is affecting the cocoa sector

The reason for the difficult situation in Ghana is mainly due to the presidential elections in December. President-elect Mahama has promised to reform the cocoa sector, but for the time being there are ongoing disruptions to the new marketing system introduced this season by Cocobod, Ghana’s cocoa regulator. Payments from buyers and government funding have been delayed by the elections and uncertainty about the future of the cocoa sector, so sales of the commodity are slowing down. The situation is most difficult in remote rural areas, where payment delays are more acute.

Some buyers suggest that cocoa purchases have fallen by up to 20%. Cocobud denies the impact of the elections on the cocoa sector and the payment problems. The disruption poses not only a risk of smuggling, but also a threat to the domestic economy and Ghana’s reputation in the global cocoa market. All stakeholders are hopeful that structural reforms ensuring timely payments to farmers and efficient financial systems can be implemented quickly, which would safeguard the country’s interests and help maintain the confidence of international buyers.

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