Ghana, the world’s second-largest cocoa producer, is expecting its cocoa production to rebound during the 2024/25 crop season. This expectation is based on favorable weather conditions, as reported by local farmers, officials from the regulatory body Cocobod, and buyers.
However, the cocoa industry in Ghana still faces several challenges. Illegal gold mining, smuggling, and disease remain significant risks. In June of this year, Ghana’s cocoa output dropped to less than 55% of its average seasonal output, reaching a more than two-decade low.
Similar issues in neighboring Ivory Coast, the world’s leading cocoa producer, have led to a four-year global cocoa market supply deficit, causing the prices of chocolate’s key ingredient to soar to record highs.
Ghana now anticipates its output to recover to 650,000 tons in the 2024/25 season. Nevertheless, an official from the International Cocoa Organization estimates it to be around 500,000 tons.
Over 20 cocoa farmers, Cocobod officials, and local buyers informed Reuters that farms are displaying healthier pods this season compared to the previous one. This improvement is attributed to enhanced rainfall and sunshine, along with the timely application of fertilizers and pesticides.
Abdul-Majid Mumuni, head of Cocobod’s cocoa health and extension division in Ghana’s southeastern region, stated, “The crop is amazing; the trees are productive and you can count not less than 50 pods per tree.”
Ocran Christopher, a secretary of a farmers group in Ghana’s southeastern Asamankese district, said that they have harvested 500 bags since the season opened in September from their over 72-hectare farm. In contrast, they harvested about 820 bags throughout the entire 2023/24 season. He further added, “If things remain like this, we can harvest 2,000-2,500 bags.”
Cocobod officials have noticed an increase in cocoa deliveries this season but are remaining cautious as the season is still in its early stages.
Despite the positive outlook, farmers are worried about the possible outbreak of black pod disease and the ongoing issue of bean smuggling. Cocobod officials revealed that Ghana lost more than a third of its 2023/24 cocoa output due to smuggling.
In response to these challenges, the regulator, Cocobod, has taken several measures. It has increased the farmgate price by nearly 45% for the current season and replaced the long-standing cocoa loan syndication system with a new funding model. Under this new model, global traders are required to pay upfront for part of the cocoa bean shipments.
Although the new funding model is intended to deter bean trafficking, it has received mixed reviews from farmers and buyers. A district manager at a licensed cocoa buyer in Ghana pointed out that the new model’s limited funds could potentially slow purchases and encourage smuggling.
Ghana Anticipates Resurgence in 2024/25 Cocoa Production Amidst Challenges