Finance Minister Dr. Cassiel Ato Forson has shed light on the mounting challenges facing Ghana’s cocoa sector. COCOBOD, the nation’s cocoa regulator, reported a staggering revenue loss of $840 million during the 2023/2024 crop season, an outcome of forward sales contracts fixed at prices well below current market levels.
“Mr. Speaker, these 2023/24 forward sales contracts, locked in at lower prices than current market rates, have resulted in revenue losses of $840 million for both COCOBOD and the Ghanaian farmer,” he stated.
Dr. Forson explained that the pre-sold contracts prevented farmers from capitalizing on a recent surge in global cocoa prices. He further disclosed that COCOBOD was unable to supply 330,000 tonnes of cocoa required to meet its full contractual obligations for the season, leading to a deferral of these obligations to the new administration.
He warned that the financial strain is likely to worsen, with an additional $495 million in projected losses stemming from the rollover of under-supplied contracts.
“This implies that for every tonne of cocoa delivered this year in fulfillment of the rolled-over contracts, COCOBOD and the Ghanaian farmer will lose $4,000 in revenue,” he explained.
Moreover, the Finance Minister noted that Ghana’s cocoa production has declined by nearly 50% over the past three years, compounding the sector’s existing challenges.
