Post by Trade Coach on Oct 20, 2013 17:50:29 GMT 1
Ghana is currently the second largest exporter of cocoa after Côte D'Ivoire. Revenue derived from cocoa is Ghana's second largest source of export earnings - accounting for 30% of its total exports. In other words, cocoa has been described as the backbone of the Ghanaian economy.
Over the past decade, there have been a number of issues affecting the cocoa industry - such as cocoa smuggling into Côte D'Ivoire and a reduced supply of light beans for local processing, both of which have left cocoa farmers and producers dissatisfied.
This calls for the Government of Ghana (GoG) making appropriate changes to better utilize Ghana's cocoa reserve. Cocoa production started off well in the early 20th century, then plummeted in the 1990's, and is currently on a high production scale. Yet, future predictions have it that production will decline in 2030 and worsen by 2050 due to changing weather conditions.
The cocoa industry in Ghana is monopolised by the Ghana Cocoa Board (COCOBOD). COCOBOD buys the bulk of Ghana's cocoa product through its 26 Licensed Buying Companies (LBCs) and then exports it throughout the world.
To protect Ghanaian farmers from fluctuations in the world market price, COCOBOD fixes the price of cocoa. This price determines the fate of Ghana's 720,000 cocoa farmers who have little choice in where else to sell their output.
Surrounding West African countries have similar price fixing schemes, but differences between the prices in neighbouring countries have led to smuggling. Most notable is the smuggling across the border between Ghana and Côte D'Ivoire.
Until recently, the trend was that of large amounts of cocoa being smuggled from Côte D'Ivoire to Ghana due to Ghana's higher cocoa price and quality. But, for several months now, the trend has reversed.
The FOB prices offered to farmers in Ghana have sunk beneath those offered by neighbours Côte D'Ivoire and Togo. This disparity has propelled cocoa smuggling that has been exposed through the video footage of Anas Aremeyaw Anas', a Ghanaian investigative journalist. Furthermore, Lambert Aka, a local cocoa farmer at the Côte D'Ivoire border explains, "Now it's the Ghanaians who are sending their cocoa here. It's not a lot for the moment. But we often see little trucks coming from Ghana to unload beans."
Source: allafrica.com/stories/201309191534.html
Over the past decade, there have been a number of issues affecting the cocoa industry - such as cocoa smuggling into Côte D'Ivoire and a reduced supply of light beans for local processing, both of which have left cocoa farmers and producers dissatisfied.
This calls for the Government of Ghana (GoG) making appropriate changes to better utilize Ghana's cocoa reserve. Cocoa production started off well in the early 20th century, then plummeted in the 1990's, and is currently on a high production scale. Yet, future predictions have it that production will decline in 2030 and worsen by 2050 due to changing weather conditions.
The cocoa industry in Ghana is monopolised by the Ghana Cocoa Board (COCOBOD). COCOBOD buys the bulk of Ghana's cocoa product through its 26 Licensed Buying Companies (LBCs) and then exports it throughout the world.
To protect Ghanaian farmers from fluctuations in the world market price, COCOBOD fixes the price of cocoa. This price determines the fate of Ghana's 720,000 cocoa farmers who have little choice in where else to sell their output.
Surrounding West African countries have similar price fixing schemes, but differences between the prices in neighbouring countries have led to smuggling. Most notable is the smuggling across the border between Ghana and Côte D'Ivoire.
Until recently, the trend was that of large amounts of cocoa being smuggled from Côte D'Ivoire to Ghana due to Ghana's higher cocoa price and quality. But, for several months now, the trend has reversed.
The FOB prices offered to farmers in Ghana have sunk beneath those offered by neighbours Côte D'Ivoire and Togo. This disparity has propelled cocoa smuggling that has been exposed through the video footage of Anas Aremeyaw Anas', a Ghanaian investigative journalist. Furthermore, Lambert Aka, a local cocoa farmer at the Côte D'Ivoire border explains, "Now it's the Ghanaians who are sending their cocoa here. It's not a lot for the moment. But we often see little trucks coming from Ghana to unload beans."
Source: allafrica.com/stories/201309191534.html