Ghana Loses 160,000 Tons of Cocoa to Smuggling in 2023/24 Season

Ghana’s cocoa industry has suffered a significant blow, losing more than 160,000 tons of cocoa to smuggling during the 2023/24 season, according to COCOBOD officials.

This represents more than a third of the country’s cocoa output for the year, with farmers seeking higher prices outside the country’s borders due to local price instability and delayed payments.

Charles Amenyaglo, Director of Special Services at COCOBOD, revealed the alarming figures to Reuters, stating that smuggling losses more than tripled compared to the previous season.

He attributed this surge to the growing sophistication of smuggling rings, which are exploiting Ghana’s economic crisis and offering farmers higher prices in neighboring Côte d’Ivoire, Togo, and even Burkina Faso.

“Conservatively, I will say we lost 160,000 tons,” Amenyaglo noted, adding that Ghana’s anti-smuggling task force intercepted about 250 tons of cocoa this year, a significant increase from the 17 tons seized in 2022/23.

The situation has been worsened by COCOBOD’s inability to pay farmers on time due to challenges with its syndicated loan, which finances cocoa purchases.

Farmers have increasingly turned to smugglers, lured by the promise of better prices and quicker payments.

The Ghanaian government is planning to deploy the military to help tackle the problem, which has become more sophisticated.

Smugglers have employed creative methods, including hiding cocoa in tipper trucks under quarry chippings and in fuel tankers disguised with “Don’t tamper” seals.

Ghana’s cocoa output was already facing challenges due to poor harvests, and by the end of June, the country had produced just 429,323 metric tons, far below its usual levels.

With global cocoa prices on the rise due to a four-year supply deficit, the loss of such a significant portion of its crop has had a major impact on the country’s economy.

In response, Ghana has implemented changes for the upcoming 2024/25 season, including a 45% increase in farmgate prices and a new funding model aimed at reducing smuggling. However, concerns remain that a weakening currency may diminish the benefits of the price hike.

“We’ve invested a lot to raise cocoa production in Ghana, not for cocoa sectors in Togo or Ivory Coast to blossom,” Amenyaglo emphasized, underscoring the importance of addressing the smuggling issue to protect the future of Ghana’s cocoa industry.