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Eric Opoku, the Minister-Designate for Food and Agriculture, has expressed concern over a significant decline in Ghana’s cocoa production, marking the lowest output in two decades.
During his vetting by Parliament’s Appointments Committee on Monday, January 20, Opoku revealed that the Ghana Cocoa Board (COCOBOD) had reported production levels of 530,000 metric tonnes for the current season, a sharp contrast to previous years.
“Just recently, during the transition engagement, COCOBOD submitted a document indicating production was at 530,000 metric tonnes. Whether it’s 430,000 or 530,000 metric tonnes, both figures reflect a significant decline. This is the lowest in the last two decades,” Opoku stated.
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Opoku highlighted the financial ramifications of the production slump, including difficulties with Ghana’s cocoa loan commitments.
He disclosed that Ghana had secured an $800 million syndicated loan to purchase 850,000 tonnes of cocoa but failed to meet the production target, resulting in a default.
“At the end of the season, we were unable to produce enough to meet 850,000 tonnes. We defaulted on the loan. The outstanding delivery of 374,000 tonnes has been rolled over to this year,” he explained.
The minister-designate stressed the urgent need to address the mounting debts in the cocoa sector to ensure its recovery. “Now that we have assumed office, we must look at how to deal with this debt and other pressing issues before making progress,” Opoku added.
The drop in production signals challenges for Ghana, the world’s second-largest cocoa producer, which relies heavily on cocoa exports for foreign exchange and economic stability. The sector has faced issues such as ageing trees, diseases, and climate change impacts, which have compounded the production challenges.
