Ghana’s Cocoa Production Expected to Increase in 2024/25 Season

Confidence UbaniNovember 6, 20241 Mins read682

Photo Source: Modern Ghana.

Ghana’s cocoa production is expected to increase in the 2024/25 season, according to local farmers and Cocobod officials. The rebound is expected due to favourable weather and better support for farmers.

In June, Ghana’s cocoa production dropped to its lowest level in 20 years, falling by more than 55 per cent of its seasonal average. This shortage added to a global supply deficit, raising cocoa prices to record highs. Cocobod now projects Ghana’s cocoa output to reach 650,000 tons, although some estimates are lower at around 500,000 tons.

To support farmers and discourage cross-border smuggling, Ghana set its cocoa producer price for the 2024/25 season at GH¢48,000 per tonne (GH¢3,000 per 64kg bag). This decision, announced on September 11, marked a 129 per cent increase from last season’s price of GH¢20,928 ($1,335) per tonne. The price for a 64-kilogram bag of cocoa has now increased to $192, or $3,063 per ton.

The government hopes the increase will reduce the incentive for farmers to sell their cocoa across borders, where prices are often higher. Despite the positive outlook, challenges remain. Smuggling took more than a third of Ghana’s cocoa output last year, partly driven by the declining value of the cedi. Farmers are also concerned about the risk of black pod disease spreading.

The cocoa sector is vital to Ghana’s economy and contributes around 10 per cent to the country’s GDP. However, smallholder farmers—who make up most of the industry—face rising costs. Fertilisers and essential supplies have become more expensive, and poor road conditions have increased transport costs. The new farm gate pricing system aims to ease these burdens, but some local buyers worry about funding limitations that could delay cocoa purchases.