Ghana’s Cocoa Export Revenue Drops

Ghana, the world’s second-largest producer of cocoa, has experienced a significant decline in its 2024 export earnings, which have dropped to $1.7 billion the lowest level in 15 years. According to data from the Bank of Ghana, cocoa export earnings have fallen below the $2 billion mark, marking a sharp 25.4% decrease over the past year. This decline is primarily driven by a reduction in cocoa production, which has decreased by over 11% during the same period.

A key factor behind this decline is the widespread of illegal mining (galamsey), which has severely harmed cocoa farms and caused significant environmental damage. This has led to a sharp decrease in cocoa yields, negatively impacting local farmers and the country’s economy as a whole.

In addition to the environmental harm caused by galamsey, Ghana’s cocoa industry is also grappling with the persistent challenge of the Cocoa Swollen Shoot and Virus Disease (CSSVD). Affecting about 17% of the country’s cocoa trees. This viral disease has weakened the health of cocoa plantations, leading to further reductions in production.

Approximately 23% of the country’s cocoa trees are classified as overaged, moribund, and unproductive. These trees have reached the end of their productive lifespan, contributing to the overall decline in output. As a result, a massive rehabilitation effort is urgently needed to restore these farms to productivity. The combined effects of these issues mean that only 60% of Ghana’s total cocoa tree stock is still productive, while a significant 40% is considered technically redundant.

Source: Graphic.com.gh