Ghana faces lowest cocoa crop in 20 years, seeks recovery with military support

Published 2024년 9월 16일

Tridge summary

The Cocoa Board of Ghana (COCOBOD) has deployed the military to combat cocoa smuggling during the 2023/24 crop year, as nearly a third of the country's cocoa production has been lost to sophisticated trafficking networks. This has led to Ghana's worst crop year in 20 years, with a 55% drop in production. Low prices and payment delays have driven farmers to sell to smugglers in neighboring countries where cocoa is more valuable. The military intervention aims to reduce smuggling and stabilize the domestic market. The global cocoa market is also affected, with prices rising due to production declines in Ghana and Côte d'Ivoire, creating a significant deficit. Investors are monitoring US economic reports and Federal Reserve policies, which could impact the commodity market.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

By: Claudemir Zafalon The Cocoa Board of Ghana (COCOBOD) has announced that due to massive smuggling during the 2023/24 crop year, the country’s military will be deployed to reinforce the anti-smuggling task force. The move is aimed at combating increasingly sophisticated trafficking networks that have siphoned off nearly a third of Ghana’s annual cocoa production, contributing to Ghana’s worst crop year in 20 years. Ghana, the world’s second-largest cocoa producer, faced critical production in 2023/24, with just 429,323 metric tons harvested by the end of June. This figure represents a 55% drop compared to the same periods in previous harvests. The main factor driving this decline was the increase in smuggling, a direct result of low prices paid to producers and delays in payments to COCOBOD. Farmers, unhappy with lower prices and financial instability, have resorted to selling their produce to smugglers operating in neighboring countries. In Côte d’Ivoire and Togo, cocoa is more ...

Source: Mercado Do Cacau