Background
Ghana's cocoa production for the season-ending June was reported at 429,323 metric tons, marking less than 55% of the average seasonal output, according to Cocobod data released on Tuesday. The diminished harvest, primarily driven by adverse weather and tree disease, mirrors a broader trend across the world's largest cocoa producers, Ghana and Ivory Coast, which collectively supply about 60% of global cocoa.
After Ivory Coast, Ghana is the world's second-largest exporter of cocoa beans, producing between 900,000 and 1,000,000 metric tons of cocoa per year during peak seasons. Cocoa is a vital component of the Ghanaian economy and contributes significantly to employment and foreign exchange. Cocoa cultivation in Ghana dates back to the late 1800s and has become a staple of the agricultural economy.
Most of Ghana's cocoa bean exports go to North America, the United States, China, Japan, Malaysia, the Netherlands, Germany, and the United Kingdom. Ghana used to export between 850,000 and 900,000 metric tons of cocoa per year, but current data shows a drop in that amount, with exports expected to reach only 600,000 to 650,000 metric tons by 2024.
The Ghana Cocoa Board (COCOBOD) supervises the sector and sets quality standards for the hundreds of thousands of smallholder farmers that work in it. The country's climate and fertile soil are perfect for cocoa cultivation with its main cocoa-growing regions in Ashanti, Eastern, Western, and Brong-Ahafo regions. However, productivity has suffered staggering loses over recent years due to different challenges.
Reduced output and more local processing activities are blamed for this decline. As of 2024, production declined to a record low between 650,000 and 700,000 metric tons. This marks a dramatic decline from the preceding decade when production averaged between 800,000 and 1,000,000 metric tons per year.
Factors Affecting Cocoa Production and Export
Typically, Ghana completes the bulk of its cocoa harvest by the end of June, making COCOBOD data indicative of this season's main crop for the second-largest cocoa producer globally. The regions of Ashanti and Western South, key contributors to Ghana's cocoa output, recorded significant declines in production, largely attributed to swollen shoot disease and artisanal mining activities locally known as galamsey.
The Ghana Civil Society Cocoa Platform has highlighted the detrimental impact of galamsey on cocoa farming in these regions, emphasizing the need for intervention. Meanwhile, challenges such as smuggling along the borders with Ivory Coast and Togo have further compounded production woes over recent seasons.
Ghana's cocoa exports and production are impacted by a number of social, economic, and environmental factors. One major issue is the detrimental effects of illegal mining, or galamsey as it is known locally, on cocoa farming. Galamsey activities cause significant land degradation, diminishing the availability of fertile ground for cocoa farming. The use of toxic compounds such as mercury in mining pollutes water sources, which are critical for irrigation and soil health.
Furthermore, deforestation caused by illegal mining changes the microclimate required for cocoa growth, further reducing output. Climate change is another major element influencing cocoa output in Ghana. Altered rainfall patterns and rising temperatures undermine the delicate ecological balance required for cocoa cultivation, resulting in lower yields. Pests and illnesses pose substantial hazards to the business as well. Cocoa farms are increasingly afflicted by pests such as capsids and illnesses such as black pod disease, both of which can destroy crops if not controlled properly.
Again, the aging population of cocoa producers poses a long-term concern. Many cocoa farms are run by elderly farmers, resulting in diminishing output due to antiquated farming practices and limited access to modern agricultural resources. Although the majority of cocoa production is done by peasant farmers on holdings of less than three hectares, a tiny handful of growers appear to control the trade. According to certain surveys, approximately one-quarter of all cocoa producers receive slightly more than half of overall cocoa income.
Younger generations are generally unwilling to embrace cocoa farming, preferring metropolitan alternatives, threatening the sector's survival. To get better prices, Ghanaian farmers are also smuggling beans to nearby nations. Ghana pre-sold 785,000 tons for the 2023–2024 season, however, it might only provide 435,000 tons. Ghana has traditionally sold 80% of its output, or 750,000–850,000 tons, in one year.
Economic factors are also quite important. Farmers have revenue instability as a result of the fluctuating global cocoa prices, which deters investment in the industry and lowers overall production levels. The farmers' capacity to invest in better farming practices and inputs is hampered by high production costs and restricted finance availability.
Efforts to overcome these difficulties include sustainability programs that promote ecologically friendly farming techniques and increase productivity. The Ghanaian government, through programs led by the Ghana Cocoa Board (COCOBOD), gives enhanced seedlings, fertilizers, and insect control methods to farmers. There are also concentrated efforts to add value to cocoa locally by boosting processing capacity, which not only provides jobs but also boosts the economy. Anti-galamsey campaigns are being ramped up to combat illegal mining, restore degraded areas, and safeguard cocoa fields.
Conclusion
In conclusion, Ghana's economy depends heavily on its position as the second-largest exporter of cocoa in the world, which boosts employment, foreign exchange profits, and overall growth. However, from historical highs of 900,000 to 1,000,000 metric tons per year, production has decreased, with projections for 2024 indicating 650,000 to 700,000 metric tons. This decline, reflected in lower export volumes, is caused by issues such as illegal mining (galamsey), climate change, pests and illnesses, an aging farming population, and economic instability.
To address these concerns, Ghana's government and COCOBOD are supporting sustainable farming techniques, improving agricultural inputs, expanding local processing capacity, and eliminating illegal mining. These measures seek to sustain and rejuvenate the cocoa sector, assuring its long-term economic contribution and Ghana's key role in the global cocoa market.
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