Cocoa output for 2023/24 season drops by 40%, driving record-high prices

According to two sources from Ghana’s cocoa sector regulator, COCOBOD, the anticipated cocoa output for the 2023/24 season is likely to fall significantly short of expectations, with an estimated 40 per cent shortfall from the target of 820,000 metric tons.

In the previous 2022/23 season, COCOBOD reported a loss of around 150,000 tons of cocoa due to smuggling and illegal gold mining, locally known as galamsey

Despite the current predicament, the second source remains optimistic about Ghana’s potential for production recovery

The decline in cocoa production from both Ghana and Cote d’Ivoire, coupled with increasing deficits, has propelled global cocoa prices to record highs.

The surge in cocoa prices is beginning to impact retail markets, with chocolate manufacturers such as Hershey anticipating a slowdown in consumer demand due to escalating costs.

Samuel Adimado, the president of Ghana’s cocoa buyers group, described the current production forecast as ‘shattering,’ noting that member firms are adapting their operations to remain viable in the face of these challenges.

Highlighting the concerning trend, the first source emphasised that rising global cocoa prices have incentivised smuggling activities, potentially leading to even higher losses in the current season.