Ghana Fails to Benefit From 156% Rise in Cocoa Price in 2024
Cocoa prices recorded a significant surge of 156% in 2024, rising from $4,456 per tonne in January to $10,869 per tonne by December, according to data from the Bank of Ghana.
The sharp increase was largely attributed to supply constraints faced by Ghana and its peer producer, Ivory Coast.
Analysts have pointed to climate change and the outbreak of tree diseases as key drivers of the supply challenges. Additionally, many cocoa farmers have blamed the Government for failing to address illegal gold mining activities that have devastated large portions of the country’s cocoa-growing regions.
Ghana’s cocoa production for the 2023/2024 season plummeted to 550,000 metric tonnes, significantly lower than the 1 million metric tonnes produced in 2021. This marks a substantial decline and underscores the impact of poor crop yields during the season.
The decline in production translated into reduced export revenue for the country. The Bank of Ghana reported cocoa exports of $1.69 billion by the end of 2024, far below the potential revenue that could have been achieved if production levels had matched those of 2021.
Adding to the challenges, Ghana has delayed the delivery of 370,000 metric tonnes of cocoa from the 2023/2024 season to buyers, exacerbating supply pressures and highlighting the ongoing struggles within the cocoa sector.
As the cash crop remains a critical contributor to Ghana’s economy, addressing production challenges and implementing sustainable farming practices will be essential to stabilizing output and boosting revenue in the years ahead.
