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Ghana’S Cocoa Crisis: Smuggling Threatens The Golden Bean’S Future
(MENAFN- The Rio Times) Ghana, the world's second-largest cocoa producer, faces a critical challenge as smuggling threatens its prized crop.
An estimated 160,000 tonnes of cocoa were lost to smuggling in the 2023–24 season, representing over a third of the expected output.
The crisis stems from price disparities between Ghana and its neighbors. Côte d'Ivoire and Togo offer higher prices due to more stable currencies, creating lucrative opportunities for smugglers and desperate farmers.
Ghana's cocoa production has declined significantly. By June 2024, the country had produced only 429,323 metric tonnes since September, less than 55% of the average for previous seasons.
Authorities have responded to the crisis. Charles Amenyaglo, director of special services at Cocobod, leads an anti-smuggling task force that has intercepted about 250 tonnes of smuggled cocoa.
Smugglers employ increasingly creative methods, hiding beans in tipper trucks, disguising them as palm oil, and concealing them in fuel tankers. The Ghanaian government has taken steps to address the issue.
Ghana's Cocoa Crisis
In April 2024, they increased the cocoa price paid to farmers by 58.26% to $2,188 per tonne. However, many farmers still find smuggling more profitable due to the weakening Ghanaian cedi.
This crisis impacts the global cocoa market, which has entered a four-year supply deficit. International cocoa prices have soared, reaching $10,000 per tonne in March 2024.
Ghana's cocoa sector, which accounts for about 10% of GDP, relies heavily on smallholder farmers. These farmers face rising production costs and poor infrastructure.
The government has implemented additional measures, including opening the 2024/25 season early with a new funding model. They have also increased the farmgate price by 45%.
As Ghana grapples with this crisis, the future of its cocoa industry hangs in the balance. The outcome could have far-reaching implications for global chocolate production and prices.
An estimated 160,000 tonnes of cocoa were lost to smuggling in the 2023–24 season, representing over a third of the expected output.
The crisis stems from price disparities between Ghana and its neighbors. Côte d'Ivoire and Togo offer higher prices due to more stable currencies, creating lucrative opportunities for smugglers and desperate farmers.
Ghana's cocoa production has declined significantly. By June 2024, the country had produced only 429,323 metric tonnes since September, less than 55% of the average for previous seasons.
Authorities have responded to the crisis. Charles Amenyaglo, director of special services at Cocobod, leads an anti-smuggling task force that has intercepted about 250 tonnes of smuggled cocoa.
Smugglers employ increasingly creative methods, hiding beans in tipper trucks, disguising them as palm oil, and concealing them in fuel tankers. The Ghanaian government has taken steps to address the issue.
Ghana's Cocoa Crisis
In April 2024, they increased the cocoa price paid to farmers by 58.26% to $2,188 per tonne. However, many farmers still find smuggling more profitable due to the weakening Ghanaian cedi.
This crisis impacts the global cocoa market, which has entered a four-year supply deficit. International cocoa prices have soared, reaching $10,000 per tonne in March 2024.
Ghana's cocoa sector, which accounts for about 10% of GDP, relies heavily on smallholder farmers. These farmers face rising production costs and poor infrastructure.
The government has implemented additional measures, including opening the 2024/25 season early with a new funding model. They have also increased the farmgate price by 45%.
As Ghana grapples with this crisis, the future of its cocoa industry hangs in the balance. The outcome could have far-reaching implications for global chocolate production and prices.
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