Ghana set to process more of its raw cocoa

Ghana is set to start processing about 300,000 tonnes of cocoa out of the annual 700,000 tonnes it produces, thanks to a government-private sector partnership.

This forms part of efforts aimed at ensuring that 80% of cocoa produced in Ghana are processed and value added within the country for economic gain, stated Finance and Economic Planning Minister Kwadwo Baah-Wiredu.

It has also been hinted that some international cocoa processing companies such as Archer David's Morrison of USA, Barri Calebaut of France and WAMPO are to start operation in Ghana beginning next year. These companies are expected to process about 35% of cocoa produced in Ghana, alongside the almost 8% cocoa beans presently processed by the Cocoa Processing Company and indigenous companies.

It is estimated that eight cocoa processing companies will operate to process cocoa beans in Ghana for both internal consumption and export from 2008.

This is also expected to reduce the concentration on export of cocoa from Ghana. Western Europe imported about 67.6% of Ghana’s quality fermented cocoa, with Holland alone importing 33.8% of the total import value between 2004 and 2006. The United Kingdom imported 12.05%, Belgium 8.9%, Germany 3.6%, Japan 7.20% and the United State of America recording an import rate of 3.26% between the years 2004 and 2006.

In spite of the successes chalked in making the cocoa processing dream realised, some experts have said that it would not in any way help to reduce the prices of finished products. It was noted that, 75% of revenue made from cocoa is in the form of payment to farmers for beans purchased, with the remaining 25% going into servicing, research and packaging, among others.

It was also realised at the just ended 2nd Africa Cocoa Summit held in Accra that companies spend huge sums on cocoa beans processing.

Others felt that the mass operation of cocoa processing companies in Ghana after 2008 would increase competition, and as a result reduce prices of the end products.

Ghana is currently the second largest producer of cocoa in the world, with an annual production of 700,000 metric tonnes, well behind Cote d’Ivoire, which produces 1,287,000 tonnes.

The Deputy Minister of Finance and Economic Planning, George Gyan-Baffour, said at the Cocoa Summit in Accra that efforts were underway to record an all time high cocoa production target of one million tonnes by 2010. That, he said, would ensure that foreign demands were met while also feeding local industries.

The Statesman