Ghana's new cocoa industry regulator lowers output forecast

Ghana will produce about 800,000 tonnes of cocoa in 2016/17, the new head of industry regulator Cocobod, Joseph Boahen Aidoo, told Reuters on Monday, slightly reducing a previous forecast of 850,000 to 900,000 tonnes. Aidoo, a former minister responsible for the cocoa-rich Western region and agricultural expert, replaced Stephen Opuni, who was fired by President Nana Akufo-Addo in one of his first acts upon taking office on January 7.
Some 13 top Cocobod officials were also ordered to take compulsory leave following the removal of Opuni, who was widely criticised by farmers and traders for a perceived lack of transparency in his management of the industry. "We are on the field and I think I would like to be modest in our expectation," Aidoo told Reuters on Monday in his first interview since taking up the job last month.
"We are currently around 600,000 tonnes and I believe it will be on the safer side to say we will do around 800,000 (tonnes) this year," he said. The world's second largest cocoa grower after Ivory Coast produced 780,000 tonnes last season. Cocobod has also begun negotiations with international banks for its annual syndicated loan for crop purchases, Aidoo said, adding that he expected Ghana to require less than the $1.8 billion it secured for the current season.
"Normally the figure depends on the crop forecast, the cedi exchange rate and the world market price of cocoa. But I don't think we'd need $1.8 billion this year. The price of cocoa is now falling, so we'd look at all that," he said. Meanwhile Ghana plans to spend heavily to end an epidemic of swollen shoot disease that has destroyed 17 percent of tree stocks and is considering public-private partnerships to supply agrochemicals to farmers and develop irrigation systems. The new administration will look at contracts relating to chemical imports to improve efficiencies, Aidoo said. "Chemicals play a critical role in our cocoa sector because we have a premium cocoa quality that must be protected. So we'll be taking steps to review that," he said. Aidoo said he would be seeking to improve farming practices and support growers and buyers to boost the harvest above 1 million tonnes annually in the medium term.