Ghana’s cocoa regulator, Cocobod, announced on Tuesday it will not seek a syndicated loan for the 2024/25 season for the first time in over 30 years, according to CEO Joseph Boahen Aidoo.
The new cocoa season will begin on September 1, earlier than usual, with a reduced target of 650,000 tonnes, Aidoo said. This marks a 20% decrease from the initial forecast of 810,000 tonnes due to inadequate rainfall.
Aidoo assured that the financing will come from local sources rather than cocoa traders. Cocobod will self-finance, saving $150 million in interest compared to last year’s record 8% loan rate.
The decision follows one of Ghana’s poorest harvests in a decade due to harsh weather from El Nino, rampant smuggling, and swollen shoot disease. The opening of the season usually occurs in October.
Despite the challenges, farmers are hopeful for a better 2024/2025 season with improved weather conditions and the rehabilitation of farms affected by diseases and illegal mining.
