Ghana’s cocoa regulator plans to borrow up to $1.5 billion by September to buy cocoa for the 2024/25 season and make up for low production. Usually, they secure a loan at the beginning of each season to purchase beans from farmers. However, this year’s $800 million loan faced delays due to lower-than-expected cocoa output.
As a result, COCOBOD has withdrawn $600 million from the loan and canceled the rest. This decision was made because the cocoa output for the season is almost 40% below the forecasted amount, making it impossible to guarantee the full loan.
Cocoa smuggling, sickness, and unfavorable weather have all had an impact on Ghana’s cocoa production. According to COCOBOD, it is anticipated to be about 40% below target in the 2023–2024 season. The industry watchdog put it out that during the 2022–2023 season, it lost almost 150,000 tons of cocoa beans to illicit gold mining, or galamsey as it is known locally.
It anticipates significantly higher losses this season as more smuggling is encouraged by a global increase in cocoa prices.
According to COCOBOD, the swollen shoot virus destroyed almost 590,000 hectares of cropland between 2018 and 2024.
One source said they were optimistic that Ghana would still reach the 810,000-ton objective for the upcoming season since improved weather and restored cocoa estates will increase production.
According to central bank figures released this week, Ghana’s cocoa export earnings decreased by about 50% year over year in the first four months of the year.
