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Ghana: Cocoa smuggling and the Ivorian connection

Thursday December 30 2010

Even though it is an election conflict confined to Cote d’Ivoire, the ramifications go beyond the Ivorian political arena.

There are indications that the Ivorian misfortune has somehow turned out to be an opportunity for Ghana during the current cocoa season amid reports that Ivorian cocoa beans are being smuggled in a big way into the country.

Despite officials Ghanaian denials, Ghana’s cocoa purchases declared so far by the state cocoa regulator, Ghana Cocoa Board (COCOBOD), have shot up so much that the Board has had to revise its purchasing target from about 600,000 to 800,000 metric tonnes for the 2010/2011 season.

The 33 week season which started on October 1 is set to end by the end of May 2011.

The fact that COCOBOD chief executive Tony Fofie has found cause to caution buying companies against purchasing Ivorian beans has strengthened the belief that the Ivorian smuggling connection is real.

Cote d’Ivoire is the world’s leading producer of cocoa with Ghana ranking as another major grower.

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Comparative figure

The irony is that it is Ghana that has over the years suffered the smuggling of its beans due to the fact that Ivorian buyers used to pay better prices for the crop.

By the end of November, COCOBOD had declared that it had purchased close to 400,000 metric tonnes of cocoa while giving indications that it was going to perform better than the target of 600,000 tonnes it had set for itself.

A comparative figure for last year’s purchases was about 200,000 tonnes for the same period.

It is these high figures that have given analysts some reason to believe that the crisis in Cote d’Ivoire has played a part in the increased cocoa purchases in Ghana.

Mr Pierre Soro, an analyst based in the Ivorian capital Abidjan, told Africa Review by phone that he did not discount the fact of Ivorian cocoa getting into Ghana.

“There are various reasons for that….the better price on offer in Ghana and the fact that some of our farmers who want to get quick money for their crops are driven to smuggle. Almost everything is at a standstill now so there is definitely an incentive to smuggle,” said Mr Soro.

'Phenomenal rise'

Mr Fofie countered with the assertion that Ghana produced premium cocoa and COCOBOD did not wish to compromise quality by diluting with smuggled Ivorian beans.

“In line with this, we have directed our quality control company to ensure no Ivorian beans of low quality are allowed into the country,” Mr Fofie said.
According to the COCOBOD official, the increased output Ghana is registering is attributable to increased local production due to higher producer prices, good rainfall and improved use of fertiliser.

But Mr Soro disagreed, terming Ghana’s purchasing figures as “just phenomenal” and pointing out they are not “adding up” if Ivorian cocoa is not included.

“It is not easy for Ghana’s cocoa regulator to accept publicly that Ivorian cocoa has found its way to Ghana. It is common knowledge that out borders are not well covered and it is easy to cross at various points. So, there should be no argument about this.”

Daring farmers

Officials of Ghana’s Customs Excise and Prevention Service (CEPS) working along the border insist the Ivorian border remains closed.

One official at Kojo Badukrom, a small town on the border, observed that “some daring farmers from the Ivorian side may have crossed the border undetected through the bush, given that the situation in Cote d’Ivoire is very fluid.”

Ghanaian farmers along the border generally deny seeing any serious movement of beans from the Ivorian side.

But Nana Badu Bio, a farmer in Kojo Badukrom, noted: “It is our farmers who have always crossed the border to sell but, in the past week, they have not done so because the buyers from the Ivorian side have stopped coming. In addition, the government is paying more this time.”

The question is, is the government's decision to pay more designed to take advantage of the Ivorian situation?

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