The Bank of Ghana has published data that shows that cocoa prices experienced a positive trend in the first four months of 2023, due to a combination of factors that affected the global cocoa market.
According to the Central Bank, the prices went up from $2,539.86 per tonne in December 2022 to $2,924.37 per tonne in April 2023, which represents a 15.2% rise since the beginning of the year and a 13.0% increase compared to the same period last year.
The main drivers for the higher prices were lower production levels in major cocoa-producing countries, higher demand from Ivory Coast’s grinding industry, which is the world’s top cocoa grower, and growing global consumption of cocoa products. Cocoa exports from Ghana also saw a significant growth of 30.3% to $950.8 million in the first four months of 2023, thanks to the higher volume of exports.
The Bank of Ghana explained that the lower production volumes were mainly due to unfavorable weather conditions and lack of fertiliser and pesticides in some cocoa-growing regions. The higher demand from Ivory Coast’s grinding industry was attributed to the increased domestic processing capacity and the government’s policy to encourage local value addition. The increased global demand was driven by the recovery of the global economy from the COVID-19 pandemic and the rising popularity of chocolate and other cocoa products among consumers.
The Bank of Ghana also noted that the positive trend in cocoa prices was beneficial for Ghana’s economy, as cocoa is one of the country’s main export commodities and a source of income for many farmers and traders. The Bank of Ghana said that it would continue to monitor the developments in the global cocoa market and provide support to the cocoa sector through its policies and programs.