The swollen shoot virus sickness, illegal mining operations, bad weather, and widespread smuggling have all contributed to a large decline in Ghana’s cocoa revenue in the first quarter of 2024.
In an interview with JoyNews Desk, Fiifi Boafo, Head of Public Affairs at COCOBOD, outlined the main causes of the concerning decline in cocoa revenue of more than $500 million, as revealed by the Bank of Ghana.
He highlighted how illegal mining operations are negatively affecting the production of cocoa by saying, “Farmers are being cut off from their farms by these illicit activities.”
“Farmers find it difficult to get aid to harvest cocoa due to these disruptions,” Mr. Boafo continued.
Illegal mining has had serious negative effects on the environment, including contaminated water bodies that impair irrigation.
Boafo stated, “Water bodies required to irrigate cocoa farms are being polluted by illegal mining activities.”
The drop in revenue has been mostly attributed to unfavourable weather patterns in addition to unlawful mining.
“El Niño phenomenon, which caused warmer and drier conditions, leading to lower yields,” was mentioned by Mr. Boafo.
The issue has been made worse by the Cocoa Swollen Shoot Virus Disease (CSSVD), which has destroyed over 500,000 hectares of cocoa crops.
Boafo highlighted the extent of the issue by stating, “Over $200 million was spent to rehabilitate farms affected by Cocoa Swollen Shoot Virus Disease.”
COCOBOD has implemented a number of strategies to address these issues. Boafo revealed that there are “five individuals already jailed and several cases pending in court” against illicit miners and traffickers.
Additionally, COCOBOD strives to provide financial support to cocoa farmers. “By giving cocoa farmers more money for their produce, we are encouraging them,” Mr. Boafo said.
The COCOBOD legal team also supports farmers in their efforts to hold miners accountable for interfering with their agriculture.
“Farmers who want to take miners to court for interfering with their farm use are receiving assistance from our legal team,” he said.
Boafo is certain that COCOBOD would be able to obtain the required funding in spite of the production shortfall.
The institution’s trust in preserving financial stability was demonstrated by his assurance that “our production shortfall would not affect our chances of accessing the cocoa syndicated loan.”
Source: Fostina Safo