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Business News of Saturday, 14 December 2002

Source: GNA/Corrected by McKinley

Ghana to meet cocoa projections

Ghana is sure to meet its projected harvest target of more than 400,000 metric tons of cocoa for the 2002-03-crop year, according to field reports being monitored by the Ghana Cocoa Board (Cocobod). The trend of the returns so far indicated that cocoa purchasing is on course and that the projection of 430,000 tons by the close of the crop year can be attained. The company's weekly returns indicated that more than 205,000 tons have been purchased as at November 28, barely seven weeks into the main crop season, up from 178,000 tons in the sixth week ending November 21.

The Board has projected a harvest of 380,000 tons of cocoa in the main season, which is expected to end in April 2003. This represents an improvement on the 2001-02 main crop, which produced 321,321 tons. The Board has taken over direct control of the disease and pest control program (mass spraying campaign), which the government started last year to rid cocoa trees of black pod and capsid. The take over has led to a tremendous improvement in the disease control program, buyers have indicated.

There is also a general decrease in the rate of smuggling of beans across the borders, especially to the Ivory Coast. The government said at least 60,000 tons of cocoa was smuggled out in the last season, up from 50,000 tons that was smuggled out in the previous season and launched a vigorous drive to arrest the situation. It has also stepped up the development of cocoa growing areas by providing them with social infrastructure such as houses for farmers and good community roads. Cocobod is currently seeking about $300 million to expand a hi-tech farming project, which involves application of fertilizer on cocoa farms in all centers. If successful, the expansion is expected to be more than double the national production in three years towards the half a million ton target by the close of the 2004-05 crop year as set under the cocoa sector development program.

Ghana, the world second largest cocoa producer is said to be losing out to Indonesia, following her abysmal performance in the last three years. Production for the 2001 through 2002 crop year was 340,000 metric tons, the lowest in six years, as a result of a bad mid-crop, which fetched below 20,000 metric tons as against an average of 50,000 tons. Both the government and the Cocobod attributed last season's poor production to unfavorable weather conditions, rampant smuggling and disease infestation and have since launched a frantic drive to improve the three areas.

Stakeholders are optimistic that the current recovery measures would yield positive results and make Ghana regain its substantive position as the second world largest producer which it recently lost to Indonesia. Ghana was the largest exporter of cocoa beans in the world until 1978 when Ivory Coast overtook it.