Ghana cocoa purchases 6% below last year

Cocoa purchases in world No. 2 grower Ghana are about 6 percent below last season, according to official data seen by Reuters on Tuesday, a figure the government has said is skewed lower by smuggling.

Cocoa purchases declared by private buyers to Ghana's regulator Cocobod since the start of the season in October -- the best reflection of output from the West African state -- hit 611,619 tonnes by July 29, according to Cocobod figures.

That compares with 651,974 tonnes declared during the same period a year ago, Cocobod said.

Ghanaian officials have blamed smuggling for the shortfall in purchases volumes and Cocobod said at least 60,000 tonnes had been taken illegally out of the country to Ivory Coast and Togo, where prices are higher.

The West African state is hoping to clamp down on smuggling with tighter border surveillance and is considering measures to keep its purchase prices competitive with neighbours to discourage illicit trade.

Cocoa output in neighbouring Ivory Coast, the world's top grower, is also lagging last year.

LIGHT CROP LOOKING GOOD

Despite the season's shortfall, output since the light crop began in late June has outpaced last year by about 3.7 percent -- boding well for future production.

Some 30,182 tonnes have been purchased since the light crop began, compared with 29,112 during the equivalent first five weeks of the 2009 light crop, Cocobod data showed.

The 11-week light crop beans are mainly sold to local processing companies at 20 percent discount and Cocobod has projected to buy about 50,000 tonnes this year.

That would put full 2009-10 cocoa purchases at 631,437 tonnes, compared with about 705,000 tonnes in 2008-09.

But farmers have said Cocobod's light crop projection seems low given good growing conditions.

Ghana, on track to become a commercial oil exporter next year after the start of production from the offshore Jubilee oil field, has said it is aiming to boost cocoa production to 1 million tonnes per year by 2012.