Finance Minister, Dr. Ato Forson, Claims Cocoa Sector is on Its Knees Due to Poor Management

In a candid assessment of Ghana’s cocoa industry, Finance Minister Dr. Ato Forson has stated that the sector is currently struggling due to what he described as poor management and lack of effective oversight.

According to Forson, the country’s cocoa production has dropped by a staggering 50%, severely impacting the industry, which has long been one of Ghana’s most significant economic pillars.

Dr. Forson was on Tuesday presenting the 2025 Budget Statement and Economic Policy to Parliament in Accra, where he expressed deep concern over the challenges facing the cocoa sector.

He noted that Ghana, traditionally one of the world’s leading cocoa producers, is now facing a crisis that has resulted in the drastic decline in production levels.

The situation, he warned, has far-reaching consequences for the economy, farmers, and the nation’s overall revenue.

Declining Cocoa Production

The sharp drop in cocoa production by 50% has raised alarms about the sustainability of the sector. Dr. Forson cited several factors contributing to this decline, including mismanagement, inadequate investment, and failure to implement effective policies aimed at improving production.

He emphasized that despite cocoa being a major foreign exchange earner for the country, the sector has been neglected for too long, leading to a significant reduction in output.

“The cocoa sector is on its knees, and it’s clear that the decline in production is a result of poor management,” Dr. Forson stated. “We’ve seen a 50% drop in cocoa production, and this is a sector that has historically been one of our strongest economic drivers. If we do not act quickly and decisively, we risk further damaging this critical industry.”

Forson further pointed out that the declining productivity in cocoa farming could have serious implications for the livelihoods of farmers, many of whom depend entirely on cocoa for their income. With falling production levels, these farmers are increasingly struggling to make a living, and the reduced output is also impacting the country’s export revenue.

Poor Management and Inadequate Policies

In his speech, Dr. Forson attributed the crisis in the cocoa sector to years of poor management by both the government and relevant stakeholders. He criticized the lack of strategic policies aimed at revitalizing the sector, pointing to ineffective management of resources, a failure to modernize farming techniques, and a lack of support for cocoa farmers.

“The government must take responsibility for this situation. There has been a failure to invest in the right infrastructure, to provide farmers with the necessary tools, and to create a conducive environment for growth. Without these key investments, we cannot expect to maintain our position as a top cocoa producer,” he said.

Dr. Forson also noted that there has been insufficient attention given to the challenges faced by cocoa farmers, such as inadequate access to fertilizers, poor road infrastructure, and an unreliable supply chain. Additionally, many farmers have not been adequately trained in modern agricultural practices, which has further exacerbated the decline in production.

Economic Consequences

The finance minister stressed that the cocoa industry’s struggles are not just a concern for farmers, but for the entire Ghanaian economy. As one of the country’s top export commodities, a decline in cocoa production directly affects the nation’s foreign exchange earnings. With a drop in cocoa exports, Ghana risks losing valuable revenue, which is essential for funding key government programs and projects.

Moreover, the drop in production could also lead to job losses across the cocoa value chain, affecting not just farmers, but workers involved in cocoa processing, export, and other related sectors.

“The broader economic impact of this decline in cocoa production cannot be overstated. The cocoa sector supports hundreds of thousands of livelihoods across the country, and the reduction in production is affecting not only the farmers but the entire economy,” Dr. Forson warned.

Call for Immediate Action

To address these challenges, Dr. Forson called for immediate action from the government, industry stakeholders, and the private sector. He emphasized the need for urgent reforms in the cocoa sector, including increased investment in research and development, better training for farmers, and the introduction of modern farming technologies.

Additionally, Forson proposed the establishment of a more efficient and transparent system for managing cocoa revenues to ensure that funds are properly allocated to support the sector. He also suggested the creation of a sustainable strategy for improving the infrastructure supporting cocoa farming, such as better roads, storage facilities, and transportation networks.

“We need a comprehensive plan to revive the cocoa sector. We must provide our farmers with the tools and support they need to increase productivity, and we must modernize the industry to ensure it remains competitive on the global market,” Forson concluded.

Conclusion

Dr. Ato Forson’s statement has shed light on the dire situation facing Ghana’s cocoa sector, with production levels plummeting by 50% due to years of mismanagement and inadequate policy measures. The Finance Minister’s call for urgent reforms and increased investment in the sector underscores the need for immediate action to safeguard the future of this crucial industry.

As the cocoa sector struggles to regain its footing, the government, stakeholders, and the private sector must work together to address these challenges and ensure the long-term viability of Ghana’s cocoa production.