Ghana's cocoa bean export value has seen a sharp decline, dropping 26.9% in the second quarter of 2024, according to data from the Ghana Statistical Service.

The export value fell from GH₵1.57 billion in the second quarter of 2023 to GH₵1.15 billion in 2024, marking the fifth consecutive quarterly decrease.

The drop is part of a broader downward trend, with a 24.7% fall in the first quarter of 2024 compared to the same period in 2023.

The value plunged by 80% between the first and second quarters of 2024, translating to a GH₵4 billion reduction.

Ghana’s cocoa industry is facing a tough production season, with output by June 2024 reaching just 429,323 metric tonnes—less than 55% of the average in previous years.

This could result in the country’s lowest annual production in over two decades.

The global cocoa market is grappling with a four-year supply deficit, driven by poor harvests in both Ghana and Ivory Coast, causing prices to rise.

However, Ghana has not benefited from this price increase due to rampant smuggling. Farmers, frustrated by low local prices and delayed payments, have turned to trafficking rings, leading to the loss of over a third of the 2023/24 cocoa output, amounting to around 160,000 metric tons.

In response, Ghana's Cocobod has raised the farm gate price by 45% for the 2024/25 season, increasing it from GH₵2,070 to GH₵3,000 per 64-kilogram bag.

Previously, Ghana’s prices were GH₵490 lower than those of neighbouring Côte d'Ivoire, fueling smuggling.

With the new price, Ghana now offers GH₵440 more per bag than Côte d'Ivoire, though the latter has yet to announce its 2024/25 pricing.