Tag: Cocoa

  • COCOBOD CEO  demands ‘mutual confidence’ to secure fair cocoa prices to safeguard farmers 

     

    By Adnan Adams Mohammed

     

    ​In a major push for regional economic solidarity, the Chief Executive of the Ghana Cocoa Board (COCOBOD), Dr. Abbey, has made a passionate call for Ghana and Côte d’Ivoire to deepen mutual confidence and maintain a common strategic direction on key industry issues, particularly cocoa pricing.

    ​Speaking on the immense economic leverage held by the two West African neighbors, Dr. Abbey highlighted that closer alignment is the only sustainable pathway toward ensuring fair value for local producers on the international market and insulating them from the volatile swings of global commodities trading.

    The strategy has received significant political backing, with the Finance Minister, Dr. Cassiel Ato Forson, stepping forward to publicly endorse the push for a unified framework.

    ​Shaping the Global Cocoa Value Chain

    ​Dr. Abbey emphasized that because the two nations collectively control more than sixty percent of global cocoa production, they possess unparalleled power to influence the market if they maintain a united front. However, he warned that fragmented market approaches would only erode this advantage, allowing multinational buyers to dictate terms and weaken national efforts to secure fair returns for cocoa exports.

    ​”Ghana and Côte d’Ivoire have a unique opportunity to shape the future of the global cocoa industry. However, this can only be achieved if we continue to work together in a spirit of openness, honesty, and trust,” Dr. Abbey stated.

     

    ​He further urged both nations to move beyond high-level dialogue and demonstrate an unwavering commitment to coordinated action that directly protects the livelihoods of smallholder cocoa farmers, who form the backbone of both economies.

    ​”With one accord, the two countries can achieve a lot in terms of price on the international market,” he emphasized.

     

    Legislative and Financial Backing for the Framework

    ​Reinforcing the economic necessity of this cross-border alliance, Dr. Cassiel Ato Forson threw his weight behind the initiative, noting that a joint pricing policy is a matter of national interest that transcends daily politics.

    ​Forson highlighted that a unified front is the most effective mechanism to safeguard national revenues and stabilize the cocoa sector against manipulative external market forces.

    ​”A common pricing framework between Ghana and Côte d’Ivoire is not just optimal, it is non-negotiable if we want to protect our economies from global price volatility,” Dr. Ato Forson stated, backing the push for synchronized policy execution. “We must ensure our farmers are never left at the mercy of fragmented state strategies.”

     

    ​Trust and Transparency as the Foundation

    ​Dr. Abbey observed that successful partnerships are entirely dependent on accountability, stressing that agreements reached in conference rooms must be backed by enforceable practices on the ground. Historical precedents show that without a unified stance, unilateral policy changes by one country can inadvertently undermine the market positioning of the other.

    ​”The discussions we hold must be matched by practical actions and mutual confidence. Without trust and transparency, it becomes difficult to achieve the common objectives we seek for our farmers and our economies,” he added.

     

    ​The COCOBOD Chief Executive also highlighted the importance of sustaining cooperation on broader systemic challenges confronting the sector. Beyond pricing, these include enforcing ethical environmental standards, ensuring strict supply chain traceability, building climate resilience against changing weather patterns, and improving overall farmer welfare.

    ​A Unified Front Against Stricter Global Regulations

    ​The framework for this partnership remains anchored by the Côte d’Ivoire–Ghana Cocoa Initiative, an established strategic platform designed to promote policies that advance the livelihoods of cocoa farming households across West Africa. The initiative serves as a crucial defensive barrier against external economic pressures.

    ​Industry stakeholders have consistently argued that closer coordination between the two leading cocoa producers is essential to strengthening their collective bargaining power within the global cocoa market. By improving value retention within the producing countries, West African nations can ensure that a fairer share of the wealth generated from the multi-billion-dollar global chocolate industry returns directly to local communities.

    ​As global consumer demand for sustainably sourced cocoa continues to grow, and international regulatory requirements—particularly from the European Union—become increasingly stringent, observers believe that a stronger and more united Ghana–Côte d’Ivoire alliance will be pivotal. Only by presenting a harmonized front can West Africa successfully shape the future of the international cocoa trade and advance the socio-economic welfare of millions of agricultural households.

     

  • Ghana’s total export earnings hits $17bn by August 2025

    Ghana’s total export earnings hits $17bn by August 2025

    Ghana’s total export earnings reached $17 billion by the end of August 2025, according to the September Economic and Financial Data released by the Bank of Ghana (BoG) last week.

    Gold led the way, recording $11.7 billion in earnings compared to $6.6 billion in July 2024.

    Cocoa exports brought in $2.4 billion, up from $915 million, while oil exports stood at $1.8 billion, down from $2.7 billion in the same period last year.

    On the import side, Ghana spent $11.7 billion to finance imports by the end of August 2025, compared to $10.7 billion in the same period last year.

    Oil imports accounted for $3.7 billion, a sharp decline from $10.2 billion in 2024.

    Non-oil imports stood at $8 billion, up from $7 billion in August 2024.

    This development pushed Ghana’s trade surplus higher, reaching $6.1 billion.

    Gross international reserves ended August 2025 at $10.7 billion, down from $11.1 billion in June.

    Speaking at the Pre-Monetary Policy Committee Meeting, BoG Governor Dr. Johnson Asiama said Ghana’s strong trade position and reserves were driven by robust gold exports and higher cocoa receipts.

    He added that despite seasonal pressures on the cedi and moderating remittance inflows in recent weeks, the country’s gross international reserves still covered about four and a half months of imports.

    On the currency, he stressed that the cedi remains one of the strongest globally year-to-date, appreciating by about 21% as of September 12, 2025.a

     

  • Afarinick, CJ Commodities and Oman Carbon to unlock carbon assets in Ghana’s cocoa sector

    Afarinick, CJ Commodities and Oman Carbon to unlock carbon assets in Ghana’s cocoa sector

    Afarinick, Ghana’s foremost leader in landscape restoration and farm management, CJ Commodities, a licensed Ghanaian cocoa buying company with a 10% market share in the 2024/25 season, and Oman Carbon, a pan-African Carbon Project Developer, on Thursday August 28, 2025 have announced the signing of a landmark Memorandum of Understanding (MoU) at the Africa–Singapore Business Forum (ASBF) 2025.

    The agreement launches four scalable carbon projects: agroforestry, clean water, clean cook stoves, and biochar, which are embedded directly within Ghana’s cocoa value chain.

    Together, the three partners are positioning Ghana’s cocoa sector as a new frontier for high-integrity, Paris (climate change agreement)-aligned carbon assets.

    “This MoU signals the maturation of Africa’s carbon markets,” said Kwabena Boamah, Director of Oman Carbon. “By structuring climate-smart cocoa projects under internationally recognized carbon methodologies, we are delivering measurable and tradeable credits at scale aligned with both investor expectations and community needs.

    “Cocoa is the backbone of Ghana’s economy, but its long-term sustainability depends on climate resilience,” said Joe Forson, CEO of CJ Commodities and Afarninick.

    “By embedding carbon finance into our vertically integrated operations, we are proving that cocoa can generate both export revenues and high-quality, verified carbon credits.”

    Over the next 10 years, the projects are expected to generate: 4.0 million tCO₂e removals → ≈ US$50–80M. Oman Carbon will lead project structuring, utilizing its partner ecosystem for Monitoring, Reporting and Verification (MRV) and carbon market placement.

    This ensures that every tonne of CO₂ reduced or removed is tracked across its lifecycle, from capture to credit issuance. This provides investors with complete transparency, traceability, and third-party certification.

    The signing at ASBF 2025 in Singapore underscores the strategic convergence of African natural capital with Asian financial markets.

    The Forum’s theme, “Bridging Capabilities, Charting Sustainable Growth,” captures the essence of the partnership: to unlock scalable climate investment opportunities in Africa’s agricultural backbone.

    Singapore’s Minister for Sustainability and the Environment, Grace Fu, urged African and Asian partners to strengthen cooperation on climate action and food security, emphasizing that technology and innovation are crucial for building resilient economies.

    She welcomed cross-border partnerships that align environmental objectives with sustainable development.

    Ghana’s President John Dramani Mahama highlighted Ghana’s role as a gateway for Singaporean firms into Africa, noting that Africa–Singapore trade increased by 50% between 2020 and 2024 to nearly US$14 billion.

    President Mahama stressed the need for reforms in the global financial system to close Africa’s financing gap and invited Singaporean businesses to explore opportunities in logistics, agribusiness, renewable energy, digital services, and advanced manufacturing.

    The partnerships were signed as part of this broader Ghana–Singapore collaboration, highlighting growing investor confidence in Ghana’s green economy.

    For international buyers and investors, the Afarinick–CJ–Oman Carbon partnership offers:

    •​Diversified carbon asset classes (agroforestry, water, cookstoves, biochar).

    •​High-integrity credits under VCS methodologies, with digital MRV for transparency.

    •​Scalability across Ghana’s cocoa belt, engaging hundreds of thousands of smallholder farmers.

    •​Risk-mitigated impact through vertical integration, local execution, and global market access.

    “This is more than a sustainability initiative; it is an investable platform,” said Joe Forson, CEO of CJ Commodities and Afarinick.

    “By aligning carbon markets with Ghana’s most strategic export crop, we are creating long-term value for farmers, investors, and the climate system alike.”

    This agreement positions Ghana as a trusted hub for high-integrity carbon projects in Africa. It signals the arrival of cocoa as a climate finance asset class.

     

     

     

  • Ghana eyes new financing frameworks to boost cocoa, oil palm and other strategic crops

    Ghana eyes new financing frameworks to boost cocoa, oil palm and other strategic crops

    Ghana is stepping up efforts to unlock financing for agriculture with the inauguration of three Technical Committees to design new frameworks for cocoa, oil palm, and other strategic economic crops.

    The move, spearheaded by the Minister for Finance, Dr. Cassiel Ato Forson, is aimed at addressing long-standing funding gaps that undermine productivity and growth in the sector.

    The first to be inaugurated was the Technical Committee on Agriculture Financing, which has been given three weeks to develop a comprehensive policy framework for financing key crops.

    Its membership includes representatives from the Ministry of Finance, Bank of Ghana, EXIM Bank, GIRSAL, and the Development Bank of Ghana.

    Two other committees the Oil Palm Project Committee and the Cocoa Project Committee were also inaugurated, drawing members from the Ministry of Food and Agriculture, Ministry of Trade and Industry, Ghana Cocoa Board, the Tree Crops Development Authority, Forestry Commission, and the Environmental Protection Authority.

    According to Dr. Forson, the committees are expected to deliver practical strategies that improve access to financing, enhance productivity, and ensure sustainability across the agriculture value chain.

    He stressed that strengthening support for cash crops is critical to Ghana’s broader economic transformation agenda.

    Members of the Agriculture Financing Committee include David Collison, Samuel Arkhurst, Cynthia Arthur, Frederick Amissah, and Edna Baffoe-Bonnie from the Ministry of Finance; Emelia Awuviri and Desmond Agbogah from the Bank of Ghana; Samuel Yeboah from GIRSAL; Kojo Aboagye-Yeboah from EXIM Bank; Prof. Eric Osei-Assibey from the Development Bank of Ghana; with Deborah Ashun and Edna Baffoe-Bonnie serving as secretaries.

     

     

     

  • World market reacts to Ghana Cocoa production cut …as price jumps

    By Toma Imirhe

    Cocoa prices ended last week’s rally upon news that Ghana’s Cocoa Board had cut its 2024/25 cocoa production forecast to 600,000 metric tonne from a December estimate of 617,500.

    The outlook for smaller cocoa supplies from Ghana, the world’s second-largest cocoa producer, is pushing prices sharply higher.

    The ongoing crop season in Ghana has been affected by several factors. One is adverse weather conditions such as unpredictable rainfall patterns, prolonged dry spells and climate change which have negatively impacted cocoa yields. Another is swollen shoot virus disease which continues to spread in cocoa-growing regions, reducing productivity and forcing the destruction of infected trees.

    Rampant illegal mining activities have destroyed fertile cocoa farmlands, particularly in key regions like Western and Ashanti. Many cocoa trees in Ghana are old and less productive, with insufficient rehabilitation and replanting efforts to offset declining yields. Rising costs of fertilizers, pesticides, and labor have constrained farmers’ ability to maintain optimal production levels.

    Economic challenges particularly inflation, and last year’s currency depreciation as well as financial constraints have affected COCOBOD’s ability to provide adequate support to farmers.

    However, cocoa smuggling to neighboring countries like Côte d’Ivoire and Togo due to price disparities have reduced official production figures.

    Higher prices have been offered in Côte d’Ivoire and Togo for much of the season – prior to the recent sharp appreciation of the cedi – as Ghana’s farm gate price of GH¢33,120 per tonne was lower than prices in Côte d’Ivoire and Togo, where smuggling is rampant. Consequently, farmers and middlemen have illegally diverted cocoa across borders, reducing the volume available for official COCOBOD purchases. As a result, COCOBOD’s declared production figures have dropped, even if actual output is higher.

    COCOBOD itself has been unable to secure its annual syndicated loan for this crop season, the most recent being just US$800 million for the previous crop season down from the usual US$1.2–1.5 billion. With limited funds, COCOBOD cannot purchase the full harvest, forcing farmers to either sell to smugglers who pay upfront in cash, hoard beans, hoping for better prices later, or shift to illegal mining (galamsey) for quicker income

    COCOBOD is implementing measures like disease control, farmer support programs, and replanting initiatives, but these take time to yield results.

    Ghana’s reduced output, combined with similar challenges in Côte d’Ivoire, could tighten global cocoa supplies further.

    Cocoa prices have risen also in part due to concerns about tighter cocoa supplies from the Ivory Coast. Government data released last week showed that Ivory Coast farmers shipped 1.679 million metric tonnes of cocoa to ports this crop season from October 1 2024 to June 22 2025, up 6.9% from last year but down from the much larger 35% increase seen in December. There are reports that heavy rain in the Ivory Coast is keeping cocoa growers off their farms and is disrupting the ongoing mid-crop cocoa harvest.

    Cocoa prices had been under pressure over the past couple of weeks, with New York market cocoa posting a two month low a fortnight ago and London cocoa posting a two and a half month low. Recent rain in West Africa is expected to benefit the region’s cocoa crops however and has limited last week’s surge in cocoa prices.

     

     

     

     

  • Cocoa farmgate price increased again to $3,062/mt

    Cocoa

     

    Adnan Adams Mohammed

     

    Ghanaian cocoa farmers would now receive GHC49,600 ($3,062) per metric ton of cocoa beans with immediate effect for the rest of 2024/25 season.

     

    This is second time of increasing cocoa price in the same season with the the initial increase pegging the price at GHC48,000 as announced on September 1, 2024.

     

    The increase as announced by President Nana Akufo-Addo, last week at the Farmer’s Day celebration is to help boost farmers’ incomes and also curtail smuggling.

     

    A Reuters’s report indicates that, rumors of a possible price hike led to farmers’ hoarding beans in October, potentially squeezing global supplies.

     

    The authorities have been seeking to increase farmers’ incomes and deter smuggling, which led to Ghana losing more than a third of its cocoa output for 2023/24, according to Cocobod officials.

     

    This compounded sectoral woes that brought Ghana’s production to a more than two-decade low, helping send global cocoa prices to record highs.

     

    Mr Akufo-Addo also said he had directed Cocobod to provide scholarships to cocoa farmers’ children in tertiary education.

     

    However, Mr Bright Simons, a vice president at Accra-based think tank IMANI Africa, said the motivation for the policies “appears to be strictly about votes in the impending elections”, noting that the price hike was significantly below the cumulative effects of inflation and currency depreciation, muting the potential impact.

     

    Ghana, one of Africa’s most stable democracies, heads to the polls on Dec. 7 to elect a replacement for Akufo-Addo, who first came to office in 2017. Vice President Muhamudu Bawumia of the ruling New Patriotic Party, and former president John Mahama of the main opposition National Democratic Congress party, are the main contenders.

     

    Polls from Accra-based research group Global InfoAnalytics tip Mahama to win as Ghana’s worst economic crisis in a generation weighs against the ruling party. Dr Bawumia, an economist and former central banker, is seen as the face of the government’s economic policies.

     

    Ghana’s cocoa production is second only to neighbouring Ivory Coast.

     

     

     

     

  • Cocoa prices to fall, gold to suffer losses – BoG report

    Bank of Ghana

    September 10, 2024

     

    Business

    It notes that prices will, however, remain high relative to the pre-spike level

    With the onset of a new crop season portending larger crop sizes in Ghana and Cote d’Ivoire, the “cocoa market is expected to be calm and cocoa prices could potentially decrease,” the mid-year Monetary Policy Report of the Bank of Ghana says.

    It notes that prices will, however, remain high relative to the pre-spike level.

     

    Also, it noted that the ongoing geopolitical tensions in the Middle East and the expectation of continued production restraint by some OPEC+ producers may continue to lend some support to oil.

     

    Gold prices, the report projected, “may suffer losses as we move closer to possible Fed rate cuts in the second half of the year.”

     

     

    In its report, the central bank said prices of Ghana’s key export commodities increased on the global commodities market as of the end of June 2024.

     

    It said the weighted average price of the three major commodities exported by Ghana (cocoa, gold, and crude oil) increased in the month of June 2024.

     

    The index rose to 196.68 from 190.74 in the previous month, representing an increase of 3.1 per cent.

     

    The increase was on account of a rise in the cocoa and crude oil sub-indices, which was enough to outweigh the fall in the gold sub-index.

     

     

    The cocoa sub-index grew by 11.1 per cent while the crude oil sub-index remained almost unchanged at 0.01 per cent and the gold sub-index fell by 1.1 per cent.

     

    It noted that cocoa futures bounced back in June, reaching US$9,022.6 per tonne after a drop of 19.2 per cent in May.

     

    Tight supply, spurred by extreme weather conditions and diseases amid increasing demand, supported the price increase, the report explained.

     

     

    It said from January to June 2024, cocoa prices soared by 113.02 per cent, mainly on the back of tight supply.

     

     

    Also, crude oil prices were broadly stable in June, gaining just 0.01 per cent to settle at an average price of US$83.01 per barrel.

     

    The prices were supported by escalating geopolitical tension in Europe and the Middle East, notwithstanding OPEC+’s decision to boost supply later in the year, the report added.

     

    It noted that since January 2024, crude oil prices have increased by 7.4 per cent, mainly due to concerns about supply disruptions due to geopolitical tensions and the planned output cut by OPEC+.

     

    Spot gold dropped marginally by 1.1 per cent to close at an average price of US$2,325.34 per fine ounce in June 2024.

     

     

    Gold prices were weighed down by a rising US dollar and increasing Treasury yields but losses were moderated by safe-haven demand amid tensions in the Middle East and rising bets that the U.S. Federal Reserve might reduce interest rates later in the year.

     

    From the beginning of the year to date, gold prices have increased by 14.2 per cent, largely explained by the expectation of rate cuts by the Fed, and geopolitical tension that boosted the safe-haven appeal of the metal.