LONDON/ACCRA, June 12 (Reuters) – Ghana, the world’s second-largest cocoa producer, plans to postpone the delivery of 350,000 tons of beans to the next season. This decision comes as poor crops further deteriorate the outlook for the global chocolate industry.
Global chocolate makers are increasing prices for consumers due to cocoa’s doubling in value this year. This surge follows three consecutive years of poor harvests in Ghana and Ivory Coast, major cocoa producers.
The market anticipated Ghana would roll forward 250,000 metric tons of cocoa, about half its current crop. However, Cocobod clarified they were considering rollovers but not in quantities as large as 350,000 tons.
The country’s cocoa crop has been ravaged by adverse weather, bean disease and illegal gold mining, which often displaces cocoa farms.
Ghanian farmers are also smuggling more beans to neighboring countries to sell them at higher prices than the state purchasing price, further eroding what little crop is available for delivery in Ghana.
Five sources with knowledge of the matter said Ghana pre-sold some 785,000 tons worth of beans for the current 2023/24 (October-September) season, but will likely only be able to deliver some 435,000 tons.
Ghana regularly sells one year forward about 80% of its crop – which usually totals 750,000-850,000 tons.
However, its crop fell to around 670,000 tons last season and is not expected to exceed 500,000 tons this season. Traders and the industry fear it might not rebound significantly next season either.
Efforts to address the Cocoa supply crisis in Ghana are underway, but the road ahead remains challenging.
Additionally, collaboration with international partners and stakeholders is crucial to finding sustainable solutions to the crisis.
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