Ghana seeks to delay about 250,000 tons of cocoa deliveries due to lack of beans

Ghana is in talks with traders to postpone the delivery of at least 150,000 to 250,000 tons of cocoa until next season due to a lack of beans, in the latest sign of how a supply crunch is roiling the global market.

The Ghana Cocoa Board, the regulator, is negotiating with major traders to roll over the delivery until sometime during the season that starts in October, according to five people familiar with the negotiations. The beans are supposed to be delivered during the main harvest that will end in the coming months, and some traders are asking for a big discount for the delay, two of the people said.

The talks highlight the severity of the cocoa crisis that’s been caused by poor harvests in Ivory Coast and Ghana, the top growers, and which is threatening to further raise chocolate prices. Prices have surged to a record — topping $10,000 a ton — as the market faces another global deficit, and the scarcity of beans is making it harder for traders, processors and chocolate makers to source supply.

“At present, there are no ongoing engagements. However, we do recognize the potential need to engage with buyers in the near future,” Ghana Cocoa Board spokesperson Fiifi Boafo said. “No issue about a big discount has been brought up for any such discussion.”

No. 2 grower Ghana has faced difficulties fulfilling its contracts in recent seasons due to lower output, forcing it to roll over deliveries and putting more strain on the global market.

The country recently raised the price it pays farmers following the rally and to stop them from smuggling beans to neighboring nations for higher prices. The country’s lack of beans has also hampered its ability to secure funding that it uses to pay its growers.

One trader who also asked not to be identified said their company won’t buy any beans for the 2024-25 season from Ghana until issues over existing contracts have been resolved.