Ghana’s Cocoa Production Soars 70%, Offering Relief Amid Record Prices

Ghana, the world’s second-largest cocoa producer, has recorded a 70% increase in cocoa deliveries for the 2024-25 season, providing much-needed relief to a global market grappling with supply shortages and record-high prices.

Between the start of the season and February 13, Ghana delivered approximately 560,250 tons of cocoa beans to warehouses, a sharp rise from the 330,000 tons during the same period last year, according to sources familiar with the Ghana Cocoa Board (Cocobod).

This surge follows a challenging 2023-24 season when production dropped to just 480,000 tons, one of the lowest outputs in two decades. Despite this rebound, Ghana has revised its forecast for this season downward to under 620,000 tons due to lingering concerns over weather and crop diseases.

While this figure surpasses last year’s output, it remains below historical averages. The rise in production is partly attributed to measures aimed at curbing smuggling.

Ghana increased farm gate prices twice in late 2024 to align with higher prices in neighboring Ivory Coast, where farmers often smuggle their beans for better returns.

These adjustments have reduced illicit trade and ensured more beans enter official channels. However, smuggling remains a challenge as neighboring countries continue offering higher rates.

Cocoa Price Surge

Cocoa prices hit historic highs in 2024 due to poor harvests in both Ghana and Ivory Coast, which together account for over 60% of global production. Prices soared by over 300% within a year before stabilizing at elevated levels.

Despite these gains, Ghana’s farmers have struggled to benefit fully from the price surge due to forward sales agreements and rising costs. Cocobod raised farm gate prices by 58% in April and another 45% in September 2024, bringing payments to $8,000 per ton. Yet these increases lag behind international market rates.

The global market continues monitoring West African supplies closely as high prices complicate forward sales for traders. Ghana’s efforts to stabilize its cocoa sector through improved pricing policies and anti-smuggling initiatives have yielded progress but face ongoing challenges from climate change, crop diseases like swollen shoot virus, and illegal mining.

While Ghana’s rebound offers temporary relief to global markets, long-term sustainability will require addressing systemic issues affecting farmers and production capacity. The stakes remain high for an industry critical to both Ghana’s economy and global chocolate supply chains.

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