Ghana has announced a delay in the delivery of 370,000 metric tons of cocoa for the 2023/24 season, attributed to a significant drop in production. This figure exceeds the previously reported 350,000 tons, highlighting the severity of the situation, as stated by the food and agribusiness minister-designate, Eric Opoku, during a parliamentary committee session.
Key Highlights:
Production Decline:
Ghana’s cocoa production has plummeted to a two-decade low, with estimates below 550,000 tons for the current season, according to figures from the cocoa marketing board (COCOBOD).
Historical Context:
Cocoa production in Ghana peaked in 2021 at over 1 million tons but has seen a rapid decline since then, culminating in the lowest output in decades.
Contributing Factors:
Analysts attribute the decline to several factors, including:
Climate Change: Adverse weather conditions affecting crop yields.
Tree Disease: Diseases impacting cocoa trees.
Wildcat Gold Mining: Agricultural land degradation due to illegal mining activities, which many farmers blame on insufficient government intervention.
Financial Implications:
The poor output has led to Cocobod defaulting on an $800 million loan from international lenders, which was intended to finance cocoa purchases for the season.
Government Response:
Opoku’s statements reflect ongoing challenges in the cocoa sector, emphasizing the need for solutions to improve production and address the underlying issues affecting farmers.