Ghana to import cocoa beans

ACCRA - Ghana, the world's number two cocoa producer, may have to import beans from Ivory Coast, the world's leading producer, because much of its output has been smuggled across the border for sale at higher prices in the neighbouring country.

In a situation that has worried European cocoa companies operating in Ghana, a source at the state-run Ghana Cocoa Board Cocobod) said, "The expected tonnage for the 2001/2002 season is 435,000 metric tonnes but with two more months for the season to end, only 350,000 tonnes have been bought, leaving a shortage of 85,000 metric tonnes."

"We estimate that over 60,000 tonnes of our cocoa would be smuggled to Ivory Coast by the end of the current season," he said.

The total value of the smuggled beans is estimated at $ 60 million.

The fact that the the value of the Ghanaian cedi has plummeted to 8,000 against the dollar from 7,000 at the start of the year.

The annual production of Ivory Coast is about 1.2 million tonnes.

But the buying price from the fields in Ivory Coast is considerably higher at 1.14 euros per kg against 0.53 euros in Ghana.

Other factors responsible for the shortfall, experts said, were the dreaded black pod disease and the fact that the 14 companies holding state licences to procure beans did not penetrate into the hinterland, forcing farmers to smuggle their crop.

Cocoa processing firms said that although they currently had stocks, they would be forced to import if supplies did not improve in three months.

Jack Sinclair, managing director of Barry Callebaut (Ghana) Ltd., the local arm of the Swiss firm, said: "We are watching the situation carefully. How soon the new cocoa season will open will determine whether the situation would deteriorate or improve."

An official of the state-owned Cocoa Processing Company said, "We were supplied with 1,000 tonnes of cocoa beans by Cocobod and this will last for nearly four weeks. We are hoping we will get more before this stock runs out."

The Ghanaian arm of Swiss giant Nestle has also expressed serious concerns.

Managing director, Andre Porchet, said the company has been experiencing a shortfall in the supply of cocoa powder since May but stressed that it had received assurances from Cocobod that it would improve.

"As a company we have never experienced such a shortage before and it would be ridiculous for us to import cocoa into a country which is one of the leading producers of cocoa in the world."

Another cocoa processing company, the West African Mills Company (WAMCO), has stopped production since the start of July because of the erratic supply of cocoa beans between March and June.

A total of 315 of its workers of the joint venture between the Ghana government and a German firm, have been sent on leave with full pay and benefits pending the resumption of processing.

Tony Clement, WAMCO general manager, said because of an agreement between his company and Cocobod, they had been receiving regular supplies till early March, and that Cocobod had warned the company of the expected shortfall.