Cocoa production for the 2023/24 season could fall short by an estimated 40% of the 820,000 metric tons target for the crop season.
This is according to sources within COCOBOD, the country’s cocoa sector regulator.
Per the sources who spoke on anonymity, adverse weather conditions, a surge in smuggling activities, the pervasive impact of illegal gold mining and the prevalence of the cocoa swollen shoot disease are among the key factors contributing to the anticipated decline in production.
Sources within COCOBOD further reveal that strong seasonal winds and inadequate rainfall have exacerbated the situation, with current output forecasts hovering around the 500,000-ton mark for the season.
However, efforts to address these challenges are underway, with ongoing initiatives focusing on farm rehabilitation and collaborative endeavors with security agencies to tackle smuggling activities. Despite these efforts, concerns persist regarding the potential for further losses driven by rising global cocoa prices, which have reached record highs in recent trading sessions.
The decline in cocoa production not only impacts Ghana’s economy but also reverberates across global markets, driving cocoa prices to unprecedented levels. The London cocoa futures have breached the barrier of £5,000, while New York cocoa prices surged past the $6,000 mark, signaling heightened demand and pricing volatility.
In response to the production forecast, Samuel Adimado, President of Ghana’s cocoa buyers group, characterized the outlook as “shattering,” emphasizing the need for adaptation within the industry to navigate the current challenges. Despite the optimism regarding Ghana’s potential for production recovery, concerns remain regarding the impact of escalating cocoa prices on consumer demand and the viability of cocoa-related enterprises.
Source:norvanreports