Ghana loses $1bn in cocoa revenue

Ghana lost about $1 billion in cocoa revenue during the last six months due to a fall in global cocoa prices.
The price for a ton of cocoa dropped US$ 3,000 to US$ 2,032 as at June 1, 2017. Global production of cocoa has seen an increase of 15% as against a demand of 2.9%.
Watchers of the cocoa market are predicting that supply will outstrip demand this year; the first time in six years. The leading producer of cocoa in the world, Cote d’Ivoire also lost an estimated USD 4 billion during the period as well. It is feared, the continuous drop in the price of the commodity could affect the economies of the producing countries, especially the farmers.
CEO of COCOBOD, Joseph Boahen Adu, however, told Starr Business’ Tawakalitu Braimah that, the more than 40% price dip would not affect the amount government pays farmers for their produce.
“What we are paying our farmers now; the GHC 7,600 is even higher than what is happening at the international market. It means that Ghana is losing; it also means that we cannot increase the producer price of farmers,” Adu said.
Ghana – Cote d’ivoire technical operation meeting
Being the two leaders in the export of cocoa, having between them control of about 60% of the global output, Ghana and Cote d’Ivoire are collaborating to find ways of mitigating the impact of the price drop. The 2nd meeting of the Ghana- Cote d’Ivoire Technical Cooperation on cocoa, in Accra between June 1 and June 2, 2017, would seek to build resilient and robust coca sectors capable of rendering appreciable and sustainable benefits to farmers. The first of such meetings was held in April 2017 at the instance of the presidents of the two countries; Ghana’s Akufo-Addo and Cote d’Ivoire’s Alassane Ouatarra.
Mr. Boahen Adu said determination of price is one of things the technical committees would be looking at harmonizing. This, he believes, would somehow reduce the volume cocoa smuggled from Ghana to Cote d’Ivoire and vice versa. “When price is falling at the international market, you’ll find cocoa streaming to Ghana. It is difficult to seal the borders completely. And when prices are going up, then you’ll have cocoa moving from Ghana to Cote d’Ivoire… If you are able to harmonize even our price determination for the producers (farmers), you’ll be able to bring down or stem the tide of smuggling”, he said.
On his part, the Minister for Food and Agriculture, Dr. Owusu Afriyie Akoto said the two countries must find ways of expanding the downstream sector and increasing consumption of cocoa domestically. These steps, according to him, “are the urgent steps that will ensure the market equilibrium required to achieve remunerative producer price”.
Delivering his keynote address, the minister urged cocoa producing countries in West Africa, especially Ghana and Cote d’Ivoire to aim at gradually moving “to the end of the end of the value chain such as the production of confectionaries in order to realize the maximum gains and the other related benefits that this process will catalyze”.