Ghana’s Cocoa Production Hits 20-Year Low, Debt Challenges Loom – Eric Opoku
Minister-Designate for Food and Agriculture highlights record-low yields, loan defaults, and the urgent need for solutions to stabilize the cocoa sector
- Ghana’s cocoa production has dropped to 530,000 metric tonnes, the lowest in 20 years
- A default on an $800 million syndicated loan adds financial strain to the sector
- Urgent measures are needed to address declining yields and mounting debts
Eric Opoku, the Minister-Designate for Food and Agriculture, has revealed a sharp decline in Ghana’s cocoa production, marking its lowest level in two decades.
During his vetting by Parliament’s Appointments Committee on Monday, January 20, Opoku referenced recent data from the Ghana Cocoa Board (COCOBOD), which reported production figures of 530,000 metric tonnes for the season.
He stressed that whether the actual figure is 430,000 or 530,000 metric tonnes, the decline is undeniable and deeply concerning.
“During the transition engagement, COCOBOD indicated that their production was 530 metric tonnes. Whether it’s 430 or 530 metric tonnes, the fact remains that production has significantly dropped, marking the lowest in 20 years,” Opoku stated.
He also pointed out the financial strain caused by this downturn. Ghana secured an $800 million syndicated loan to purchase 850,000 tonnes of cocoa but failed to meet the production target, resulting in a loan default.
“The inability to produce 850,000 tonnes meant defaulting on the loan. The remaining 374,000 tonnes have been rolled over to this year, adding to the sector’s financial burdens. Addressing this debt and other liabilities is now crucial for progress,” he added.
Opoku’s revelations highlight the urgent need for solutions to address the challenges facing Ghana’s cocoa industry.
