22nd December 2024 9:18:14 AM
2 mins readThe International Monetary Fund (IMF) has projected a challenging financial outlook for the Ghana Cocoa Board (COCOBOD) in 2024, despite some positive results in 2023. Although global cocoa prices reached record levels, COCOBOD has faced significant obstacles due to lower-than-expected production during the 2023/2024 cocoa season.
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This production shortfall has impaired the board’s ability to meet its obligations under existing forward sales contracts.According to the Ghana Statistical Service, the cocoa industry continues to experience severe setbacks, with a 26% reduction in output in the third quarter of 2024, marking the fifth consecutive quarter of contraction.
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These figures highlight the difficulties faced by the sector in sustaining production levels that would allow it to take full advantage of favorable global market conditions.The IMF further noted that Ghana’s forward sales agreements have hindered the country’s capacity to capitalize on rising international cocoa prices. This missed opportunity has contributed to the sector’s ongoing struggles.
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In response, the government has taken steps to address these challenges by increasing the farmgate price for cocoa by 50% for the 2024/2025 season. This move is intended to reduce the illegal export of cocoa and prevent the conversion of cocoa farms into illegal mining sites.
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The IMF’s latest report also acknowledged the government's ongoing efforts to stabilize the cocoa sector, including the establishment of a dedicated cocoa desk within the Ministry of Finance. This initiative is part of a broader strategy aimed at restoring COCOBOD’s financial sustainability and ensuring the long-term viability of the cocoa industry in Ghana.
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