Once the world’s leading cocoa producer, Ghana is grappling with a severe crisis threatening its place in the global market.
The country, which lost its top position to Côte d’Ivoire in 1978, has seen its cocoa industry deteriorate dramatically in recent years.
In 1978, Ghana’s cocoa production fell to 159,000 tons, capturing just 17% of the global market share.
The industry showed signs of recovery in the late 1980s and early 1990s, with production rising to over 900,000 tons by 2010.
However, recent years have brought sharp declines.
By 2021, Ghana’s cocoa sector was crucial to the national economy, contributing GHS 3.1 billion (about $533 million) in revenue.
Yet, the 2022 crop season marked the onset of a troubling decline. Production dropped from 1 million tons in the previous year to 683,000 tons, a 32% decrease.
The downturn continued in the 2022/23 season, with output falling to 654,000 tons, a further 4.2% reduction.
In the 2023/24 season, production plummeted to 580,000 tons, representing an 11.3% decline.
The crisis was further highlighted in 2023 when Ghana had to import cocoa beans worth 185.2 million cedis from Côte d’Ivoire, underscoring the dire state of the nation’s cocoa production.
Illegal mining, locally known as “galamsey,” is the primary driver of the industry’s collapse.
These operations have devastated extensive areas of cocoa farmland, leading to the loss of over 19,000 hectares of cocoa farms.
Since 2020, cocoa farmers have faced an average 16% reduction in income, prompting many to lease their farms to galamsey operators for immediate financial relief.
Despite the government’s efforts to address the crisis, including a 58.26% increase in the producer price of cocoa—from GH¢20,928 to GH¢33,120 per tonne—experts argue that more incentives are needed to prevent farmers from abandoning their cocoa farms.
Compounding the issue is rampant smuggling. In 2022, Ghana lost 150,000 metric tonnes of cocoa beans to neighbouring countries through illegal trade, resulting in an estimated $600 million in lost revenue.
With the 2024 elections approaching, there is growing concern about the future of Ghana’s cocoa industry.
Major political parties have yet to present a comprehensive plan to tackle these challenges. Although some promises have been made, a detailed strategy to revive the sector still needs to be developed.
The fate of Ghana’s cocoa industry hangs in the balance. To address the sector’s critical issues, urgent and decisive action is required.
The choices made today and the policies implemented by the next administration will determine whether Ghana’s cocoa industry can recover or continue its downward trajectory.
The nation’s cherished cocoa legacy is at stake, and only time will reveal if the industry can be salvaged.
