Ghana’s Cocoa Crisis Deepens Amid Illegal Mining Surge

March 28, 2024

The Plight of West African Cocoa Farmers

In the heart of Ghana’s western cocoa belt, the once-thriving farms are now a bleak tableau of devastation. Janet Gyamfi’s 27-hectare farm, previously lush with cocoa trees, stands barren except for a few survivors amidst pools of cyanide-laced waste water—a byproduct of illegal gold mining activities. The emotional toll is palpable as Gyamfi, a 52-year-old divorcee, laments the loss of her livelihood and her children’s inheritance.

Ghana, alongside Ivory Coast, has long been a bastion of cocoa production, supplying over 60% of the world’s demand. However, this season forecasts a grim reality: both nations are bracing for catastrophic harvests. The impact on the market is already evident, with New York cocoa futures CCc2 soaring to record highs. The surge in prices reflects a broader crisis fueled by illegal mining, climate change, mismanagement, and the rampant spread of swollen shoot virus.

Cocobod, Ghana’s cocoa marketing board, reveals a staggering 590,000 hectares of cocoa plantations are now afflicted with the virus. With 1.38 million hectares under cultivation, including diseased trees still producing cocoa, experts like Steve Wateridge from Tropical Research Services recognize a tipping point in production decline.

The implications are far-reaching. Consumers in the United States are already encountering a more than 10% hike in chocolate prices this Easter, and analysts predict that the full brunt of West Africa’s crop failures will hit later in the year. Tedd George of Kleos Advisory warns that chocolate could soon become a luxury item.

For farmers like Gyamfi, the situation is dire. After resisting miners’ demands to purchase her land, she found her farm seized and destroyed within six months. Left with contaminated soil and financial burdens, she represents the human cost of this unfolding crisis.

As Ghana grapples with declining output—forecasted to plummet to just 580,000 tonnes this year—farmers like Asiamah Yeboah face tough choices. With dwindling harvests and insufficient earnings to reinvest or attract labor, selling to miners becomes an increasingly viable option.

Cocobod is under scrutiny for its handling of the sector. Plans to rejuvenate aging tree stocks have seen little progress, and efforts to combat swollen shoot are outpaced by the disease’s spread. Despite rehabilitation programs funded by loans from international banks, illegal mining continues to undermine these initiatives.

Climate change further exacerbates the challenges, with altered rainfall patterns threatening cocoa production. As West Africa struggles, other regions like Latin America are poised to fill the supply gap, with Ecuador projected to surpass Ghana as the world’s second-largest cocoa producer by 2027.

While chocolate consumers may feel the pinch in their wallets, it is the small-scale farmers in Ivory Coast and Ghana who bear the brunt of this disaster. As they face dwindling incomes and limited alternatives, the future of West African cocoa hangs in the balance.

Illegal mining in Ghana damages cocoa farms by polluting water and soil, reducing arable land. This threatens cocoa production, a key ingredient in chocolate, potentially causing a rise in global chocolate prices due to decreased supply.

Can rising cocoa prices impact global chocolate costs?

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