In the period spanning from 2022 to 2023, Joseph Boahene Aidoo, the CEO of the Ghana Cocoa Board (COCOBOD), revealed that a significant 120,000 metric tons of cocoa beans were lost due to smuggling activities in Ghana.
The significant loss poses a major threat to Ghana’s cocoa industry, a vital component of the country’s economy.
The smuggling of cocoa beans in Ghana has escalated in recent years, primarily driven by the competitive prices available in neighbouring countries.
At a press conference in Accra on October 14, Mr Aidoo voiced his deep concern over the increasing prevalence of cocoa smuggling. He lamented that despite efforts by COCOBOD and other governmental agencies, little progress has been made in curbing the illicit trade.
During the specified two-year period, Mr. Aidoo provided figures indicating that between 100,000 and 120,000 metric tons of cocoa were illicitly exported from Ghana.
2022-2023 was the time frame in which he emphasized that the issue was especially noticeable. He explained that the rise in smuggling is mostly a result of the dynamics within the international cocoa trading system, where smugglers can exploit price differences between Ghana and its neighbouring countries.
In just the past two years, an estimated 100 to 120,000 metric tons of cocoa have been unlawfully transported out of Ghana. Specifically, this was true for last year and continues to be the case this year as well.
The international market trading system is currently flipped due to this reason. When you mention that it is inverted today, it indicates a significant increase in the spot price.
