Ghana's Cocoa Crisis: A Battle Against Smuggling

Ghana has lost over a third of its 2023/24 cocoa output to smuggling, driven by low local prices and payment delays. The crisis is compounded by poor harvests and a global supply deficit, pushing prices up. Ghana is enhancing efforts to curb smuggling with military deployment and policy changes.

Ghana has suffered a significant blow to its 2023/24 cocoa output due to rampant smuggling, according to a top official from the Ghanaian Cocoa Marketing Board (Cocobod). The issue has been exacerbated by low local prices and delayed payments, forcing farmers to turn to more sophisticated trafficking networks.

Global cocoa markets are strained by poor harvests in both Ghana and Ivory Coast, which together produce a large portion of the world's cocoa. The deficit has driven up prices this year. With a more stable CFA franc and less regulation, Ivory Coast and Togo offer higher prices, enticing Ghanaian farmers to smuggle their produce there.

By June, Ghana had produced 429,323 metric tons of cocoa since the season began in September, significantly less compared to previous seasons. Charles Amenyaglo, director of special services at Cocobod, stated that smuggling losses have more than tripled this season, reaching 160,000 tons intercepted. Measures are being ramped up, including military deployment, to curb the issue.

(With inputs from agencies.)