Ghana, the second-largest cocoa producer in the world, is facing a critical challenge as smuggling threatens its prized crop. An estimated 160,000 tonnes of cocoa were lost to smuggling in the 2023-24 season, representing over a third of the expected output.
The crisis is fueled by price disparities between Ghana and its neighbors, who offer higher prices due to more stable currencies. This creates lucrative opportunities for smugglers and desperate farmers in Ghana.
To combat the issue, authorities have deployed an anti-smuggling task force that has intercepted about 250 tonnes of smuggled cocoa. Despite efforts to increase cocoa prices for farmers, many still find smuggling more profitable due to currency fluctuations.
The global cocoa market, already in a supply deficit, is feeling the impacts of Ghana’s cocoa crisis. With international cocoa prices soaring, the future of Ghana’s cocoa industry, which accounts for about 10% of its GDP, remains uncertain.
As the government implements new measures and increases farmgate prices, the outcome of this crisis will not only affect Ghana but also have far-reaching implications for global chocolate production and prices.
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