Key points:

  • Ghana’s cocoa production was 429,323 metric tons, less than 55% of the annual average.
  • The decline is due to unfavorable weather conditions, diseases of cocoa trees, illegal mining and smuggling.
  • Ghana was unable to meet its contractual obligations to exporters due to the shortage.

By the end of June, as the harvest season drew to a close, the country’s cocoa production stood at 429,323 metric tons, according to the Ghana Cocoa Marketing Board (Cocobod). This is less than 55% of the season average.

A lower harvest in Ghana, the world’s largest cocoa producer, along with a poor harvest in Cote d’Ivoire, has pushed global cocoa prices higher since the start of the year. Together, these two countries provide about 60% of the world’s cocoa supply, so their results significantly influence the global market.

Cocoa harvest in Ghana: decline amid unfavorable factors

Ghana’s main cocoa harvest season, which usually ends by the end of June, is coming to an end. The decline in yield in Ghana, the world’s second-largest cocoa producer, is due to a number of factors, including adverse weather conditions, cocoa tree diseases, and illegal mining and smuggling. It is important that Cocobod’s data doesn’t take into account the amount of cocoa that may have been illegally exported from the country, but still makes up a significant share of the crop.

On June 21, Cocobod announced the start of the light harvest in Ghana. The light harvest is a second, smaller harvest season that typically accounts for less than 10% of total annual production.

According to the International Cocoa Organization, Ghana’s average annual cocoa production over the past five seasons has been 800,000 tonnes. A peak of over 1 million tonnes was recorded in 2020/21. However, Cocobod’s data reflects three consecutive years of declining production.

Why has the cocoa harvest decreased?

The Ghana Cocoa Marketing Board (Cocobod) didn’t provide June cocoa production data for the previous two seasons. Overall, 683,269 tonnes were produced for the 2021/22 season, compared to 656,140 tonnes last season. The data shows that the biggest drop in production is in the two main cocoa growing regions: Ashanti and Western South.

By the end of June, the Ashanti region produced 103,976 tonnes of cocoa beans, up from 160,855 tonnes for all of last season. In the Western South, production was 96,810 tonnes, up from 152,277 tonnes last season.

The decline in production in these regions is largely due to the spread of swollen shoot disease (CSSVD) and illegal gold mining (galamsey). Nana Kwesi Barning, coordinator of the Ghana Civil Society Cocoa Platform, said these were the main reasons for the drop in production.

Western South major farmer Nana Johnson Mensah Kagya, who owns 80 hectares of plantation, said he had to cut down and replant more than half of his cocoa trees due to CSSVD. At the same time, illegal gold mining, according to him, distracts young people from working on cocoa plantations and causes a labor shortage.

The regions bordering Ivory Coast (Western North and Western South) as well as the eastern Volta/Oti region bordering Togo are vulnerable to smuggling, which has also negatively impacted their production volumes over the past three seasons.

Ghana fails to meet cocoa supply obligations amid shortages

Ghana and Côte d’Ivoire, the world’s two largest cocoa producers, traditionally enter into contracts for the supply of their products in advance. This year, however, production shortfalls have left Ghana unable to meet its commitments to exporters and traders.

Ghana plans to defer the delivery of up to 350,000 tons of cocoa beans to next season. Cocobod, the Ghana Cocoa Marketing Board, denies such a scale of contract transfers.

Cocobod’s CEO expects cocoa production to rise to more than 800,000 tonnes next season, which starts in October. However, industry participants and analysts believe this goal is too optimistic.

This year’s shortage has already driven up cocoa prices, and it is unclear whether Ghana will be able to meet its commitments next season even if production increases.