The September Crop: The Seasonal Shift For Ghana’s Farmers

Traditionally, Ghana has marked the opening of a new cocoa season on Cocoa Day, which falls on October 1st each year. However, the Ghana Cocoa Board, responsible for overseeing the cocoa sector, has justified this unexpected move as a response to recent disruptions in the internal cocoa market and a safeguarding measure for the country’s cocoa farmers.

This had meant a big task of adaption for Three Mountains farmers. Gideon, the ICS Manager for TMC says,

“The early season has caught us by surprise firstly and we have to adapt to the change by putting things in place speedily. Everything is on a roller coster for now to make sure we deliver. The farmers data records we have a planned system software to help us collect data and a manual system to support. The increment in the price of the cocoa is a joy to the farmers however most farmers are complaining about how to dry their Cocoa well due to the rains.”

One of the primary factors prompting this change is the impact of extreme weather on cocoa harvests. In mid-August, it was revealed that Ghana struggled to fulfil some of its cocoa contracts due to poor yields attributed to adverse weather conditions. Over the past decade, the Cocoa Swollen Shoot Virus Disease (CSSVD) has also decimated the once-prominent cocoa region of Western North, further exacerbating the decline in cocoa production.

Sources familiar with the situation have indicated that Ghana’s farmers are expected to record the lowest harvest in 13 years for the season ending on August 31, 2023, falling nearly a quarter short of official projections.

This shortfall has led to challenges for the Ghana Cocoa Board in fulfilling existing cocoa contracts and a postponement in the supply of approximately 44,000 metric tons of cocoa beans intended for future harvests.

In addition to weather-related problems, Ghana’s cocoa industry has grappled with cross-border smuggling, particularly with neighboring countries like Cote d’Ivoire and Togo. The price disparity between Ghana and these nations has led to increased smuggling activity. Cote d’Ivoire and Togo offer better prices due to their stronger currency, the Euro-backed CFA Franc, compared to Ghana, whose currency experienced significant depreciation in late 2022.

While Ghana’s decision to open the cocoa season earlier is driven by its national interests, there are concerns that it might weaken its cooperation with neighboring Cote d’Ivoire, especially regarding the coordinated announcement of farmgate prices aimed at tackling cross-border smuggling.

However, industry observers are hopeful that the earlier season start may result in a significantly higher producer price to deter further smuggling. Ghana has adjusted its expected harvest for the upcoming crop year to 650,000 tons, down from the initial estimate of 850,000 tons.

To address these challenges, the Ghanaian government is expected to introduce a “turnaround strategy” to revamp its heavily-indebted cocoa industry regulatory agency, Cocobod. The Minister of Food and Agriculture, Bryan Acheampong, has hinted at reforms in the country’s farmgate pricing policy in favor of cocoa farmers, aiming to ensure fair compensation for their efforts.

President Nana Akufo Addo officially announced this new pricing policy at the season-opening farmers’ rally on September 9, 2023, emphasising the government’s commitment to supporting cocoa farmers with stable and favorable prices in the years to come. This shift in the cocoa season and pricing policies reflects Ghana’s determination to navigate the challenges facing its cocoa industry and ensure the well-being of its cocoa farmers.