The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Joseph Boahene Aidoo, has disclosed that Ghana lost an estimated 120,000 metric tons of cocoa beans to smuggling between 2022 and 2023. This alarming revelation was made at a press conference held in Accra on Monday, October 14, where Aidoo expressed deep concern over the issue, which has worsened in recent years.
Cocoa smuggling poses a significant threat to Ghana’s cocoa industry, a vital component of the country’s economy.
The loss of such a substantial amount of cocoa beans has far-reaching implications for Ghana, the world’s second-largest cocoa producer. Smuggling has been a long-standing challenge for the country, but it appears to have escalated during the two-year period due to more favorable prices in neighboring countries, creating a strong incentive for illegal trade. Despite various efforts by COCOBOD and other government agencies to tackle this issue, Aidoo noted that progress in curbing the smuggling of cocoa beans has been limited.
In his detailed account of the situation, Aidoo pointed out that an estimated 100,000 to 120,000 metric tons of cocoa beans were smuggled out of Ghana between 2022 and 2023. He explained that the illicit trade was particularly pronounced during this period, with smugglers exploiting the disparities in cocoa prices between Ghana and its neighboring countries.
“About 100 to 120,000 metric tons of cocoa was smuggled out of Ghana, especially in the last two years. Now for last year and this year in particular, this has been so,” Aidoo stated.
He went on to explain that the dynamics of the international cocoa trading system have contributed to the surge in smuggling. According to him, the system has become “inverted,” meaning that the spot prices of cocoa on the international market are currently more attractive, encouraging smugglers to take advantage of the price differences between Ghana and neighboring countries.
“This has been so because the international market trading system is inverted. When you say it is inverted, it means that today, the spot price has become more appreciable,” he elaborated.
The issue of cocoa smuggling is not a new phenomenon in Ghana. Historically, smuggling activities have been driven by price disparities between Ghana and its neighbors, particularly Côte d’Ivoire and Togo. In these countries, cocoa farmers and traders often benefit from more favorable market conditions, including higher prices for their produce. As a result, some Ghanaian cocoa farmers are tempted to sell their beans across the border to take advantage of the higher returns.
However, the recent surge in smuggling has raised serious concerns about the sustainability of Ghana’s cocoa sector. With the country losing a significant portion of its cocoa output to illicit trade, the industry faces challenges in meeting production targets and maintaining its position as a global cocoa powerhouse. The loss of 120,000 metric tons of cocoa represents a substantial hit to Ghana’s export revenues, which are critical for the country’s economic growth and development.
In addition to the economic losses, smuggling also undermines the efforts of COCOBOD to ensure fair pricing for cocoa farmers in Ghana. The board has implemented various initiatives to support cocoa farmers, including providing guaranteed prices for their produce and investing in programs aimed at improving cocoa production and sustainability. However, the persistence of smuggling threatens to destabilize these efforts, as farmers who engage in illegal trade may bypass the support systems put in place by the board.
Aidoo emphasized that COCOBOD is committed to addressing the issue of smuggling and is working closely with other government agencies to implement measures aimed at curbing the illicit trade. These efforts include strengthening border controls, enhancing surveillance, and increasing penalties for individuals caught smuggling cocoa beans out of the country.
Nevertheless, Aidoo acknowledged that more needs to be done to effectively tackle the root causes of smuggling. He called for greater cooperation between Ghana and its neighboring countries to harmonize cocoa pricing and create a more balanced market environment. Such efforts, he argued, would help reduce the incentives for illegal trade and ensure that Ghanaian cocoa farmers receive fair compensation for their produce.
“The solution to this problem lies not only in tightening security at the borders but also in addressing the price differences that fuel the smuggling activities,” Aidoo stated.
As Ghana continues to grapple with the challenges posed by cocoa smuggling, the future of its cocoa industry remains uncertain. The country’s ability to maintain its position as a leading cocoa producer will depend on its success in combating illegal trade and ensuring that its farmers are adequately supported and fairly compensated. For now, COCOBOD and other stakeholders are working to find solutions that will protect the interests of the country’s cocoa farmers and secure the long-term sustainability of the industry.
