Cocoa price crash highlights need for domestic value addition – Trade Minister

The sharp decline in global cocoa prices from about US$10,000 per tonne in early 2025 to approximately US$4,000 in early 2026 has reinforced Ghana’s push to process more of its agricultural produce locally, Trade, Agribusiness and Industry Minister Elizabeth Ofosu-Adjare has said.

She says the price slump exposed the economic risks of relying heavily on raw commodity exports while leaving much of the value creation to overseas processors.

Speaking at the opening of the EU-Ghana Agribusiness Exhibition Forum and Trade Mission 2026, Mrs Ofosu-Adjare said Ghana must accelerate investments in domestic processing to protect farmers’ incomes, strengthen export earnings and create jobs.

“When global cocoa prices collapsed from their historic peak of US$10,000 per tonne in early 2025 to approximately US$4,000 by early 2026, it exposed with brutal clarity the vulnerability of an economy that exports raw commodities and leaves their value creation to others,” she said.

In response, she said the government is targeting domestic processing of at least 50 per cent of Ghana’s cocoa production, supported by installed grinding capacity exceeding 500,000 metric tonnes.

The Minister pointed to the performance of non-traditional exports as evidence of the economic benefits of value addition.

Ghana’s non-traditional exports reached a record US$5 billion in 2025, representing a 30.7 per cent increase over the previous year. Processed and semi-processed products accounted for US$3.9 billion, growing by 52.78 per cent, with cocoa derivatives such as paste, butter and powder emerging as the largest contributors.

She said Ghana must replicate this progress across other agricultural commodities, particularly cashew, fruits, vegetables, cassava, maize, rice and oil palm, through investments in processing, packaging and export-oriented manufacturing.

Mrs. Ofosu-Adjare also called on European investors to move beyond traditional buyer-seller arrangements and consider joint ventures, processing facilities, technology transfer and supply-chain partnerships with Ghanaian businesses.

She disclosed that government, through the Ministry and the Free Zones Authority, has commenced work on an industrial park at Afienya in Tema, which is available for investors seeking to establish manufacturing operations.

The EU-Ghana Agribusiness Exhibition Forum and Trade Mission 2026 is aimed at facilitating investment, technology transfer and commercial partnerships between Ghanaian and European businesses.

Source: Citi Business News