As Ghana's cocoa production has fallen far short of its seasonal output so far in 2024, authorities say they have put in measures to shore up cocoa production and are looking forward to a turnaround next season.
Cocoa is crucial to Ghana's economy, contributing more than 10 percent to the country's GDP in 2021.
The poor harvest in Ghana and Cote d'Ivoire -- the world's two biggest cocoa producers -- has pushed global prices higher by 90 percent in 2024 alone. That adds on to last year's rise of 59 percent, when prices in New York went as high as 4,000 U.S. dollars per ton.
Opanyin Kwarteng, a local cocoa merchant, has been trading in cocoa in Oyoko, the eastern region of Ghana, for more than four decades. He is already getting ready for next year's cocoa season and has started buying the beans from farmers. But he is worried he might not meet the expected target.
"During the last crop season, heavy rains destroyed most of the cocoa farms. Farmers complained that they recorded poor harvests. So I only got a few bags of beans from farmers," said Opanyin.
For the past three years, cocoa farmers in Ghana have been struggling to meet their production targets, as they grapple with unusual heavy rainfall among a host of other factors.
"Many cocoa farms have been destroyed by illegal mining activities. There is also the issue of ravaging pests and diseases on the farms, as well as cocoa lands being sold for housing projects," said Stephen Osei Appiah, a local farmer.
This year, Ghana's cocoa production dropped by more than 50 percent at the end of the crop season in June.
The managers of Opanyin's warehouse say they used to buy more than 500 bags of beans every season. But this year, they could only get their hands on about 200 bags from farmers due to their poor harvest.
Economists are concerned that Ghana's dwindling cocoa production could take its toll on the economy.
But the government believes Ghana's cocoa production woes are almost over because it has restored some cocoa farms across the country.
"Because of the rehabilitation we started some years ago, now these farms are coming on stream. Our expectation is that very soon in two-, three-years time, we'll have these farms also producing and adding to the stock, and it will improve our situation significantly," said Fiifi Boafo, Public Affairs Manager of Ghana Cocoa Board (COCOBOD), a Ghanaian government-controlled institution that fixes the buying price for cocoa in the country.
Opanyin hopes the government's intervention will yield results soon, so his warehouse can begin to receive many sacks of cocoa beans.
Ghana rolls out measures to shore up cocoa production
