The cocoa processing industry in Ghana is facing significant challenges as a result of dwindling cocoa bean supplies caused by low production and rising international cocoa prices.
Local cocoa processing companies are feeling the strain, with many forced to adjust their operations to mitigate costs and cope with shrinking profit margins.
Reports from Citi Business News indicate a looming crisis in the cocoa processing sector, as local firms grapple with reduced yields and insufficient cocoa bean availability to meet production demands.
This has led to a reduction in processing capacity and disruptions in production schedules, resulting in underutilization of machinery and increased per-unit costs.
Confectionery products like chocolates, spreads, and pebbles have seen a substantial decline in production, with processed cocoa beans decreasing by 50 percent and cocoa liquor, butter, and powder production dropping significantly.
The challenges facing Ghana’s cocoa industry are attributed to various factors, including illegal mining activities, adverse weather conditions, and the prevalence of swollen shoot disease. Additionally, cocoa smuggling to neighboring countries exacerbates the situation.
The decline in cocoa production has impacted Ghana’s trade balance, with cocoa exports dropping in the first four months of 2024. Consequently, chocolate prices have soared, affecting consumers who now pay higher prices for cocoa-based products.
The Cocoa Processing Company and other industry players, including Niche, Chocomac, and Cargill, are grappling with operational bottlenecks due to the cocoa supply shortage. If this trend persists, it could result in widespread job losses and the closure of some cocoa processing firms.
