African state facing cocoa crisis

Ghana, the world’s second-largest beans producer, is expected to yield just half the usual annual amount

Ghana is facing a cocoa production crisis after a major outbreak of ‘swollen shoot disease’. The issue in the world’s second-largest cocoa producer has triggered fears of a knock-on effect for global prices, which have already seen recent spikes.   

A significant cocoa-producing area in the Western African country is 81% infected with the disease, according to the Cocoa Market Report released by the International Cocoa Organization (ICCO).  

The disease has significantly impacted cocoa prices, which have nearly doubled this year due to unfavorable weather conditions and disease outbreaks in Ghana and fellow leading producer the Ivory Coast, Reuters reported on Thursday. Together, the two states produce about 60% of the world’s cocoa.   

There had been optimism for a better yield in the next season, although the outlook is threatened by the severe infestation in Western North, Ghana’s third-largest cocoa-producing region. Swollen shoot virus first reduces yields before ultimately killing the trees within a few years. Infected trees must be uprooted and the soil treated before replanting can occur.  

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The West African country spans 410,229 hectares, with 330,456 hectares currently infected, as reported by the Cocoa Health and Extension Division (CHED) of Cocobod, Ghana’s cocoa industry regulator.  

The ICCO also noted that swollen shoot disease is spreading in Ivory Coast, though local authorities have been less forthcoming about the outbreak’s extent.  

The organization stated that “Côte d’Ivoire have also halted forward sales of the next season’s crop at 940,000 tons, about 35% less than a year ago.” 

Ghana, which traditionally produces over 800,000 tons of cocoa annually, is projected to yield just over half of that this season due to the disease, aging trees, illegal gold mining, climate change, and smuggling. 

Meanwhile, it was recently announced that Russia will begin directly importing cocoa beans from Nigeria, with the first shipment expected soon. This move will diversify the import of the commodity.