Ghana’s cocoa production has fallen to its lowest level in two decades, with serious financial implications, according to Eric Opoku, the country’s Minister-Designate for Food and Agriculture. Speaking at his vetting before Parliament’s Appointments Committee on January 20, Opoku highlighted troubling reports from the Ghana Cocoa Board (COCOBOD) showing a significant decline in production.

Opoku revealed that COCOBOD’s transition report indicated the country’s cocoa production for the season stood at 530,000 metric tonnes, though he noted that figures ranging from 430,000 to 530,000 tonnes all pointed to a sharp drop in output. He stressed that this decline marks the lowest production in 20 years.

The fall in production has had severe financial consequences, Opoku explained, particularly in relation to Ghana’s cocoa loan commitments. He referenced an $800 million syndicated loan taken to purchase 850,000 tonnes of cocoa, a target that was not met, leading to a default on the loan. The repayment was rolled over to the current year, with COCOBOD now aiming to procure just 374,000 tonnes.

Opoku outlined that addressing the default and managing the sector’s growing debts would be a top priority for his administration as it works to stabilize the industry and ensure the future of Ghana’s cocoa sector.

Source:TheDotNews