Ghana’s cocoa production dropped by nearly 50 per cent in the past three years, Dr Cassiel Ato Forson, Minister of Finance, said on Tuesday.
Presenting the 2025 Budget and Economic Policy Statement in Parliament, he said cocoa, once the main stay of the economy, was now “unable” to support the economy despite increase in world market prices.
He noted that COCOBOD was unable to supply 330,000 tonnes of cocoa in the 2023/2024 crop season, and that some supply contracts had been rolled over to 2025.
“Mr. Speaker, the cocoa sector which has long been the backbone of the Ghanaian economy is sadly on its knees owing to gross mismanagement in the last few years and is now unable to support the economy as it should despite record-high world market prices,” he stated.
The Finance Minister explained that the rolled-over contracts would result in additional losses of US$495 million in 2025.
“This implies that for every tonne of cocoa delivered this year in fulfilment of the rolled-over contracts, COCOBOD and the Ghanaian farmer will lose US$4,000 in revenue,” he added.
Dr Forson indicated that COCOBOD’s outstanding debt had reached GH¢32 billion, of which GH¢11.92 billion was due to be paid in 2025.
“Outstanding cocoa road contracts reached GH¢21 billion (US$1.3 billion) in 2024, of which only GH¢4.4 billion has been accounted for in COCOBOD financial statements.
“Mr. Speaker, these 2023/24 forward sales contracts locked-in at lower prices than current market rates, have resulted in revenue losses of US$840 million for both COCOBOD and impoverished the Ghanaian farmer.
“There are also risks in relation to market price differentials and smuggling. The large gap between market prices and farmer payments encourages smuggling and threatens long-term sustainability of the industry,” he added.
Despite lapses identified in key sectors of the economy, Dr Forson said the government was committed to resolving the challenges.
He said the government would pursue the 24-Hour Economy policy, aimed at stimulating economic growth and job creation, and would present the policy to Parliament “in due course.”
