Earnings from one of the major export commodities, cocoa, is expected to increase significantly this year due to improved production.
Ghana Cocoa Board expects production to reach 1.06 million tonnes for the 2020/21 season, an all-time high in the country.
According to the Chief Executive Officer (CEO) of COCOBOD, Mr. Joseph Boahen Aidoo, cocoa produced so far amounts to 1.033 million tonnes with six weeks to the end of the season. This has already beated the previous record of 1.024 million metric tonnes in the 2010/ 2011 crop season.
The CEO of COCOBOD attributes this achievement to the hard work of farmers. He also hails COCOBOD’s interventions rolled out to increase the yields. According to him, all stakeholders in the cocoa production line must be applauded.
“This achievement has never happened in the history of our cocoa industry. Notwithstanding the negative impact of COVID-19, our hardworking farmers have broken the existing record”.
Boahen Aidoo
Also, Mr. Aidoo noted that the provision of improved seeds and fertilizers as well as COCOBOD’s mass pruning exercise contributed to the increase in yield.
Revenues from cocoa
All things being equal, Ghana will rake in more revenues from cocoa exports if price projections for the year materialize.
Data from the International Cocoa Organisation (ICCO) show that world market cocoa price averaged US$2,369.85 in 2020 compared to US$2,340.74 in 2019. This represents a marginal increase of 1.2 percent.
According to the Ministry of Finance, cocoa price is expected to gain a 1.6 percent increase and improve to US$2,407.77 in 2021. As of June 2021, export earnings from cocoa amounted to $1741.8 million, according to the Bank of Ghana. An improvement of 370.6% over the $370.10 million recorded in January 2021.
Cocoa consumption to increase
Meanwhile, Mr. Boahen Aidoo expressed optimism that production in the 2021/2022 crop season will exceed the current target. He bets his hopes on the US$400 Living Income Differential (LID) which directly goes to farmers and expected increase in chocolate consumption.
“We are very sure that as the COVID-19 pandemic is controlled, the consumption of chocolate will go up and this will lead to an increase in demand for cocoa. When this happens, the Ghanaian cocoa farmer will be better off”.
Boahen Aidoo
The CEO assured that COCOBOD will continue to put the Ghanaian farmer first to benefit from the sale of the commodity.
Introduction of cocoa weighing scales
COCOBOD has now introduced new weighing scales to be used by Licensed Buying Companies for purchases. This forms part of measures to ensure that farmers are not cheated. The weighing scales will be used when the new cocoa season begins on October 1, 2021. The scales will be used by License Buying Companies across the country.
Already, COCOBOD has secured 40,000 pieces of the new weighing scale machines for the License Buying Companies.
“This issue of weighing, and cheating cocoa farmers has created a lot of problems, mistrust and disagreement in the cocoa industry. So, we have these weighing scales that can rely on both solar and electricity so that it can work in remote places”.
Boahen Aidoo
Based on research with the Ghana Standard Authority, Mr. Boahen Aiddo stated that the new electronic weighing scales cannot be tampered with to protect the farmers. He stressed that the new system will enhance fairness and protect the integrity of the processes. The CEO, however, warned all License Buying Companies to abide by the new directive to avert sanctions by the regulator.
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