Ghana's Cocoa Production has Plummeted to Lowest Level in Two Decades - Eric Opoku

Accr, Ghana - 20 Jan, 2025 - Ghana's cocoa production has plummeted to its lowest level in two decades, according to Eric Opoku, the Minister-Designate for Food and Agriculture.

Speaking during his vetting before Parliament's Appointments Committee, Opoku revealed that the country's cocoa production for the season stood at a dismal 530,000 metric tonnes, as reported by the Ghana Cocoa Board (COCOBOD).

This significant decline in production has severe financial implications, particularly regarding Ghana's cocoa loan commitments. Opoku cited a syndicated loan of $800 million, taken to purchase 850,000 tonnes of cocoa, which Ghana failed to deliver, resulting in a default on the loan.

The minister-designate emphasized that regardless of the exact figure, whether 430,000 or 530,000 metric tonnes, the decline in production is a pressing concern. Ghana's cocoa industry has been facing numerous challenges, including adverse weather conditions, tree diseases, and the devastating impact of illegal mining (galamsey).

“Just recently during the transition engagement, COCOBOD submitted a list to us. In that document, they indicated that their production was 530 metric tonnes. In this case, both of you are right. But being it 430 or 530 metric tonnes, both are right. But production has declined and that is the lowest in the last two decades,” he stated.

“On the issues of default, Ghana went to the syndicated market and took a loan of $800 million to purchase 850,000 tonnes of cocoa. At the end of the season, we were unable to produce to meet 850,000 tonnes. We defaulted on the loans.

“They decided to roll over that delivery to this year. The quantity is 374,000 tonnes. This is the figure they gave us during the transition. Now that we have assumed office, we have to look at how to deal with this debt and many other debts in the sector before we can make progress,” he stated.

Source: Lead News Online

Source: Lead News Online