Ghana has lost more than a third of its 2023/24 cocoa production to smuggling, according to a top official from the Ghana Cocoa Board (COCOBOD), as local farmers, facing low prices and delayed payments, turn to increasingly organized trafficking networks. Poor harvests in both Ghana and Ivory Coast—the world’s second and largest cocoa producers—have exacerbated the global cocoa supply deficit, pushing up international cocoa and chocolate prices.
However, due to the more stable CFA franc and less regulated market in neighboring Ivory Coast and Togo, cocoa prices are higher there than in Ghana. By the end of June 2023, Ghana had produced 429,323 metric tons of cocoa, less than 55% of the average for that period in previous seasons, signaling the country’s largest drop in cocoa output in over two decades.
Charles Amenyaglo, director of special services at COCOBOD and head of its anti-smuggling task force, revealed that smuggling losses had more than tripled in the 2023/24 season. While over 10 individuals have been jailed for up to 10 years for cocoa smuggling, the government is now planning to deploy the military to crack down on trafficking. Smuggling rings, which lure farmers with higher prices, began to thrive in 2022 during Ghana’s economic and currency crisis. Significant quantities of cocoa are reportedly being smuggled into Togo, Burkina Faso, and even Mali.
Payment delays have plagued COCOBOD due to issues with its syndicated loan, leaving farmers without timely compensation for their beans. In response, Ghana launched the 2024/25 cocoa season earlier than expected, adopting a new funding model and raising the farmgate price by 45%. While farmers hope these changes will curb smuggling, there are concerns that a weakening currency might reduce the impact of the price hike.
SOURCE: https://dew360.net
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