The Netherlands’ Ambassador to Ghana Jeroen Verheul has issued a stark warning about the declining state of Ghana’s cocoa industry, emphasizing that without immediate reforms, the sector risks losing its competitive edge in global markets.
The caution came during discussions about Ghana’s preparedness for the European Union’s upcoming Corporate Sustainability Due Diligence Directive (CSDDD).
“If production continues declining at current rates, Ghana will see reduced cocoa exports, diminished foreign exchange earnings, and weakened economic stability,” Verheul stated at the public-private dialogue. His comments highlight growing concerns as Ghana’s cocoa output has fallen to 600,000 metric tons from 850,000 metric tons in 2020, while competitors like Brazil and Ecuador gain market share through modernized farming techniques.
The EU’s new CSDDD regulations, set to take effect in 2025, will require cocoa exporters to meet stringent environmental and labor standards. International Trade Centre coordinator Larry Attipoe explained their intervention program: “We’re providing farmers with the technical knowledge and tools needed to comply with these international requirements.” The initiative focuses on improving traceability and sustainable farming practices.
Ghana’s cocoa sector faces multiple challenges including aging trees, low yields, and limited mechanization. These issues compound the country’s economic pressures, as cocoa typically contributes 25% of Ghana’s export earnings. Bank of Ghana officials acknowledge the sector’s importance for maintaining foreign exchange reserves and currency stability.
The situation presents both crisis and opportunity. While Ghana risks losing market position if reforms stall, successful adaptation to global standards could secure its position as a premium cocoa producer. Industry analysts stress that the coming months will be critical for implementing productivity improvements and compliance measures before the EU regulations take full effect.
