09:57 a.m. Aug 05, 1999 Eastern
ACCRA, Aug 5 (Reuters) - Ghana closed its mid-crop cocoa marketing season on Thursday, one month earlier than usual.
The state cocoa marketing board COCOBOD announced the close in a statement but said final returns on purchases at upcoutry buying stations would be accepted until August 12.
The statement gave no reason for the early closure but some industry sources say it may be part of an attempt to stop smuggling of lower quality cocoa from neighbouring Ivory Coast.
``We estimate that up to 20,000 tonnes of Ivorian cocoa has been sold here,'' said one source.
At COCOBOD nobody was immediately available for comment.
Ivory Coast will liberalise its cocoa sector by October 1. Farmgate prices there are already following world market trends and are down to 200 CFA francs ($0.32) per kilo from the official minimum price of 455 CFA.
The farmgate price in Ghana, whose cocoa attracts a quality premium on world markets, is 2,225 cedi per kilo ($0.90).
Local industry sources also hinted at the possibility that Ghana might want to carry over some of its mid-crop into the 1999/2000 season (October-September) for export.
``As the rains have been very good, the quality of the mid-crop is excellent,'' said one source.
Traditionally, Ghana's entire mid-crop is processed locally. Beans sold abroad get a premium of 60 stg per tonne over LIFFE September.
At the start of the mid-crop season, on June 3, industry saw a 1998/99 mid-crop of 35,000 tonnes, up by 5,000 tonnes on the previous mid-crop.
``With all the Ivorian cocoa smuggled into the country, I believe this season's mid-crop will be over 50,000 tonnes,'' said one veteran cocoa industry source.
Ghana's 1998/99 main crop (October-May) is seen at 360-370,000 tonnes. A mid-crop of 50,000 tonnes or more would take total 1998/99 production to around 410,000 tonnes.
In 1997/98 Ghana produced 404,000 tonnes of cocoa. The average output over the past six years was 335,000 tonnes.
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