- Ghana's cocoa processing companies face challenges due to a cocoa bean shortage.
- The shortage is caused by low production, illegal mining, and disease.
- Companies are struggling to maintain operations, with reduced production and losses.
- The situation may lead to job losses and company shutdowns, with chocolate prices already rising.
Cocoa processing companies in Ghana are facing significant challenges due to a shortage of cocoa beans, resulting in decreased production and increased prices. The shortage is attributed to low cocoa production, illegal mining, poor weather conditions, and the swollen shoot disease, which have affected cocoa yields.
As a result, local cocoa processing firms are struggling to maintain steady operations, with many forced to reduce production levels and alter their business strategies to minimize expenses. The limited availability of cocoa beans has led to underutilization of machinery, resulting in inefficiencies and higher per-unit costs.
Processed cocoa beans have experienced a 30% decline, with production falling by 50% from 3,000 to 1,400 metric tonnes. Cocoa liquor, butter, and powder production have also been significantly impacted, with the company recording a US$ 6 million loss in the first quarter of 2024.
The decline in cocoa production has led to a narrowing of Ghana’s trade balance, with cocoa exports dropping significantly. Chocolate prices have skyrocketed, with consumers paying over GHS20 cedis for a 100g bar of Kingsbite chocolate, up from GHS 14 a few months ago.
Other cocoa processing companies, such as Niche, Chocomac, and Cargill, are also facing operational bottlenecks due to the scarcity of cocoa beans. If the situation persists, it may lead to massive job losses and a likely shutdown of some cocoa processing companies, highlighting the need for urgent action to address the challenges facing the industry.
