Ghana’s Cocoa Export Value Declines 26.9% in Q2 2024, Continuing Five-Quarter Downtrend
Recent data from the Ghana Statistical Service reveals a substantial decline in the export value of cocoa beans for the second quarter of 2024, plummeting from GH₵1.57 billion in Q2 2023 to GH₵1.15 billion in Q2 2024, a staggering 26.9% decrease.
This downturn continues a troubling trend, with cocoa bean exports now decreasing for five consecutive quarters.
The decline coincides with a challenging production season; as of June 2024, Ghana had produced approximately 429,323 metric tons of cocoa, representing less than 55% of its average output in previous years.
Such a shortfall could lead to the lowest annual production levels seen in over two decades.
Compounding the situation, the global cocoa market has faced a four-year supply deficit due to poor harvests in both Ghana and Côte d’Ivoire, resulting in increased prices. However, Ghana has been unable to capitalize on these higher global prices, primarily due to rampant smuggling activities.
Reports indicate that low local prices and delays in payments have prompted farmers to divert their cocoa to trafficking networks, leading to an estimated loss of 160,000 metric tons from the 2023/24 crop.
In an effort to address these issues, Ghana’s Cocobod has announced a 45% increase in the farm gate price for the 2024/25 season, raising it from GH₵2,070 to GH₵3,000 per 64-kilogram bag.
Previously, Ghana’s price lagged GH₵490 behind that of Côte d’Ivoire, which fueled smuggling. With the new price now exceeding Côte d’Ivoire’s by GH₵440, the effectiveness of this adjustment remains uncertain as Côte d’Ivoire has yet to disclose its pricing for the upcoming season.
The decline in cocoa export value underscores the multifaceted challenges facing Ghana’s cocoa sector, driven by production deficits, market dynamics, and smuggling. While the recent price adjustment signals a proactive approach to curbing illegal trade, its success will largely depend on regional pricing strategies and enforcement measures.
