GHANA has lost more than a third of its 2023/24 cocoa harvest to smuggling, a senior Cocobod official revealed, as payment delays and low prices push farmers to sell to traffickers. Smuggling rings, which offer higher prices than Ghana’s regulated market, have grown increasingly sophisticated, with cocoa being transported across borders hidden in tipper trucks, oil drums, and even fuel tankers.
By the end of June, Ghana had produced just 429,323 metric tons of cocoa, less than 55 percent of the average for this time of year, putting the nation on track for its worst production decline in over 20 years. Charles Amenyaglo, head of Cocobod’s anti-smuggling task force, estimates that smuggling losses have tripled in the 2023/24 season, with over 160,000 tons illegally moved across borders into Togo, Burkina Faso, and Mali.
The cocoa sector is reeling from a four-year global supply deficit caused by poor harvests in both Ghana and Cote d’Ivoire. This deficit has pushed global cocoa prices higher, but Ghana’s farmers, paid in the weaker cedi, have been increasingly drawn to neighbouring countries with more favourable pricing and a stable CFA franc.
Smuggling escalated in 2022 when Ghana faced an economic and currency crisis, delaying payments to cocoa farmers. Cocobod’s inability to pay farmers on time, due to financing issues with its syndicated loan, has exacerbated the problem.
The government is now stepping up efforts to combat smuggling, deploying the military to reinforce border security and intercept illicit cocoa shipments. Despite over 10 arrests leading to prison sentences this year, trafficking persists, posing a significant threat to Ghana’s cocoa industry.
Looking ahead, Ghana has opened the 2024/25 season early, with a new funding model and a 45 percent farmgate price increase. Farmers hope these changes will help curb smuggling, although there are concerns that a weakening currency may negate the price hike’s benefits.
‘We’ve invested heavily in boosting Ghana’s cocoa production, and it’s disheartening to see neighbouring countries benefit from our efforts,’ Amenyaglo said.
The fight against cocoa smuggling is now at a critical juncture, with authorities and farmers hopeful that stronger enforcement and financial reforms will restore stability to Ghana’s cocoa sector.
