Rising cocoa prices expose global market weaknesses and challenges in Ghana

By: Claudemir Zafalon The price of cocoa continues to rise steadily, pressured by limited supply and attempts to ration demand in the global market. The possibility of the market reaching the peaks recorded in April of this year, when the December contract reached US$ 12,261 per ton, is beginning to become a worrying reality for several players in the production chain. One of the biggest challenges lies at the heart of African production. In Ghana, the world's second largest cocoa producer, Cocobod – the entity responsible for regulating the sector – is facing increasing difficulties in accessing annual financing that historically depended on loans from international banks. These resources were essential to sustain the purchase of beans and provide inputs such as seedlings, chemicals and fertilizers to farmers. With the lack of traditional credit over the past year, Cocobod turned to large international traders, such as Cargill, Olam Group and Barry Callebaut, to finance its ...