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Ghana is at a heightened risk of cocoa smuggling following Ivory Coast’s recent decision to raise its farmgate price for cocoa, surpassing Ghana's rate. This move by the world's largest cocoa producer aims to discourage the illicit export of beans, yet it poses significant challenges for Ghana's cocoa industry.

Ivory Coast’s Minister of Agriculture, Kobenan Kouassi Adjoumani, announced in Abidjan that the farmgate price will increase by 20% from 1,500 CFA francs (approximately GH₵ 40) to 1,800 CFA francs (about GH₵ 48) per kilogram, effective October 1, 2024.

This new rate translates to roughly GHS 3,072 per 64 kg bag of cocoa, slightly higher than Ghana’s GH₵3,000 per bag. The price hike is intended to prevent the smuggling of cocoa to Ghana. However, it may not completely address illegal exports to other neighbouring countries like Liberia and Guinea, where buyers offer prices closer to the global market rate.

During the 2023/2024 season, Ivory Coast reportedly lost between 150,000 to 200,000 tons of cocoa to smuggling, according to Bloomberg.

Implications for Ghana

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