Cocoa farmers get only $1 as daily revenue from their production

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Research conducted by the Stanbic Bank Research Team has revealed that out of Ghana’s estimated production of 812,000 tons of cocoa beans, only 30 percent is processed locally although the country’s installed capacity for processing the crop is estimated at 450,000 per year.

The findings of the research also showed that out of the $1.9 billion revenue accrued from the production of cocoa in Ghana annually, the daily revenue realized from the crop by the over 800,000 farmers across the country is $1.

This is despite the fact that cocoa production has been the backbone of Ghana’s economy since the 1870s.

Cocoa contributes about 2.2 percent of Ghana’s national Gross Domestic Product.

Cocoa, according to the study, is grown exclusively by smallholder farmers with an average farm size of less than three hectares.

The growing of cocoa in Ghana, the research revealed, is fraught with minimal mechanization and application of fertilizer, stunting the optimal production of cocoa in Ghana.

This affects the provision of adequate cocoa beans to local grinders.

Ivory Coast in 1978 overtook Ghana as the largest producer of Cocoa globally and has since remained the number one producer of the commodity.

Current production in Ghana is about 400kg, 700kg in Ivory Coast and about 2.5 tons in South America

The research is a reflection of Stanbic Bank’s strong industry knowledge and understanding of the cocoa sector, having recently been awarded by Ghana Cocoa Awards as the Cocoa Financing Institution of the year.

The bank, has over the years, become a key partner for COCOBOD and has participated in their pre-export finance for over 10 years.

Stanbic Bank provides specialized services in the specific areas of working capital financing, trade financing, electronic payments and collections and vehicle and asset financing.

Source: 3 News

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