Weak cocoa production impacting COCOBOD amid record high prices – IMF

The International Monetary Fund (IMF) has identified 2024 as a challenging financial year for the Ghana Cocoa Board (COCOBOD), despite some progress made in 2023.

According to the IMF, COCOBOD has faced difficulties capitalizing on record-high global cocoa prices due to weak production levels during the 2023/2024 cocoa season. This shortfall has hampered its ability to fulfill commitments under existing forward sales contracts.

Data from the Ghana Statistical Service underscores the cocoa sector’s struggles, revealing a significant 26% decline in output for Q3 2024. This marks the fifth consecutive quarter of contraction in the sector.

The IMF also highlighted that Ghana missed a crucial opportunity to fully benefit from rising international cocoa prices because of its forward sales arrangements.

In response to these challenges, the government increased the 2024/2025 farmgate price for cocoa by 50%, aiming to deter smuggling and prevent the conversion of cocoa farmlands into illegal mining sites.

In its latest staff report, the IMF acknowledged the government’s initiatives to stabilize the sector, including the establishment of a dedicated cocoa desk at the Ministry of Finance.