The Ghana Cocoa Board (COCOBOD) has announced plans to supply cocoa processing companies with sufficient main crop beans as the rainy season begins, aiming to revive the struggling cocoa processing industry. This comes after several companies have had to suspend operations due to a critical shortage of cocoa beans and powder.
The Accra Times reported on June 5, that the shortage had led to temporary layoffs and financial strain on companies due to the high costs of restarting machinery and securing limited supplies at exorbitant prices.
Responding to questions sent by The Accra Times, COCOBOD acknowledged the supply shortages, stating that the total volume of beans processed by cocoa processing companies during the first and second quarters of the 2023/24 crop season (October 2023 – March 2024) was 112,884.41 tonnes. Meanwhile, COCOBOD supplied 115,416.00 tonnes during the same period, indicating that supply has slightly exceeded demand.
Read Also:
- Government Borrows GH¢19.2 Billion Through Treasury Bills in May
- Minority Leader Accuses BoG of Constructing New Residence for the Governor Amid Financial Losses
But COCOBOD explained that “Most of the processing companies blend light crop size-bean size category with main crop bean-size category to remain profitable. However, the volume of the light crop size beans during the 2023/24 season is low and therefore affected supply to the processing companies”.
Join our WhatsApp Channel for more news
Despite this, COCOBOD is optimistic that the onset of rains will improve the supply of cocoa beans and has encouraged processing companies to purchase the more expensive main crop beans.
COCOBOD also outlined several reasons for the shortfall in cocoa production, including unfavorable weather conditions (El Niño), increased smuggling to Togo, cocoa swollen shoot viral disease, and illegal small-scale mining. Additionally, hoarding of cocoa by farmers in anticipation of higher prices has further impacted bean availability.
Effects of the Shortage
The shortage of cocoa beans has led to significant price increases for chocolate and other cocoa products. The Accra Times reported on May 28 that Ghana’s popular Kingsbite chocolate now sells for GH¢32 for 100g and GH¢18 for 50g, up from GH¢15 and GH¢8-10, respectively, four months ago. Wholesale markets are similarly affected, with renowned cake maker Joyful Cakes reporting that chocolate prices have risen from GH¢1,800 to GH¢4,270. This steep price hike has caused frustration among producers and consumers alike.
The shortage has forced companies like Chocomac to shut down operations and lay off workers. Another major brand, Niche, operates only during the day to supply its confectionery factory, while Cargill, an international free zone cocoa processing company, has experienced some shutdowns and anticipates another in three months. Barry Callebaut, the only company currently operating normally, is likely to face challenges in the coming year despite its practice of purchasing cocoa beans a year in advance and maintaining large warehouses.
COCOBOD remains hopeful that the upcoming rainy season will alleviate the bean shortage, allowing the cocoa processing industry to recover and stabilise.
