120K metric tons of cocoa were smuggled out of Ghana in 2 years - COCOBOD CEO

Accra, Ghana - October 15, 2024 - Ghana has lost a staggering 120,000 metric tons of cocoa beans to smuggling between 2022 and 2023, posing a major threat to the country's cocoa industry, a vital sector of the national economy.

Joseph Boahene Aidoo, CEO of the Ghana Cocoa Board (COCOBOD), revealed this alarming figure at a press conference held in Accra on Monday, October 14, 2024, citing the allure of favorable prices in neighboring countries as the primary driver of the illicit trade.

The smuggling of cocoa beans has long plagued Ghana, with recent years seeing a worsening trend. Despite concerted efforts by COCOBOD and other governmental agencies, little progress has been made in curbing the smuggling.

Aidoo expressed deep concern over the growing trend, highlighting the estimated 100,000 to 120,000 metric tons of cocoa illegally transported out of Ghana during the two-year period.

The root cause of the surge in smuggling lies in the dynamics of the international cocoa trading system. This system creates incentives for smugglers to exploit price differences between Ghana and neighboring countries. "The international market trading system is inverted," Aidoo explained. "Today, the spot price has become more appreciable".

“About 100 to 120,000 metric tons of cocoa was smuggled out of Ghana, especially in the last two years. Now for last year and this year in particular, this has been so.

“This has been so because the international market trading system is inverted. When you say it is inverted, it means that today, the spot price has become more appreciable,'' he added.

Source: Lead News Online