Economist criticizes Ghana's cocoa sales strategy amid record high prices

Agricultural economist, Prof. Robert Aidoo, has raised concerns about Ghana's forward sales strategy for cocoa amidst soaring international market prices.

Speaking on JoyNews' PM Express, Prof. Aidoo criticized Ghana's missed opportunity to capitalize on record-high cocoa prices, which have surged to $10,000 per tonne.

He likened the situation to being paid upfront for the commodity, only to lose out

Read full articleon potential profit increases when market prices surge post-harvest.

This approach, he argued, hampers Ghana's ability to exploit favorable market conditions and maximize returns on cocoa exports.

Prof. Aidoo also highlighted Ghana's lack of domestic resources and infrastructure to purchase and store cocoa beans locally, hindering its flexibility in responding to fluctuating market conditions.

He emphasized the need for Ghana to reassess its cocoa marketing strategies and adopt measures for greater flexibility.

Meanwhile, Cocobod's Public Affairs Manager, Fiifi Boafo, attributed the decline in cocoa production to adverse weather conditions.

According to Boafo, heavy rainfall followed by severe harmattan conditions disrupted cocoa cultivation, reducing the expected harvest.

Additionally, he mentioned the impact of swollen shoot disease on cocoa production, affecting about 590,000 hectares of cocoa farms in Ghana.

These challenges compound the existing pressures on Ghana's cocoa industry, including illegal mining and smuggling.

Despite the global shortage of cocoa beans and the unprecedented rise in cocoa prices, Ghana's cocoa production has significantly dropped this year, limiting its potential benefits from the price increment.