Improved Ghana cocoa production 2015/2016 crop : Global cocoa market is likely to record a marginal surplus in the 2015/2016 crop season following improved production in Ghana, it has been revealed.
Ghana is one of the major producers of cocoa in the world and the government says production this season would be enhanced by an improved supply of inputs to farmers and expectations for favourable weather.
However, surplus cocoa could hurt revenue prospects for the West African country, which is struggling to improve its infrastructure base and stabilise the wobbly economy amid falling prices of oil and gold.
"The market is projected to register a small surplus in the 2015/16 season on account of a rebound of production in Ghana, due to greater use of inputs and expectations for better weather," Ghana's Finance minister Seth Terkper told parliament last Friday.
Terkper attributed the projected surplus to weak growth in global demand for cocoa next year as grinding margins remain poor.
Cocoa prices rose in the second quarter of 2015 as a result of weather-related supply shortfalls in Ghana but demand remains strong.
The prices are expected to peak in 2015 before lowering at the beginning of 2016 to the end of the forecast period in 2019, according to the Business Monitor International report published in October.
Terkper said earnings from cocoa beans and products exports amounted to $1,921.7 million in September, 2015, which was almost equal to $ 1,921.7 realised in the same period in 2014.
The earnings from cocoa beans were $1,340.4 million, after the price rose by 22.2 percent to $2,990.9 per ton while exports declined by 21 percent to 448,148.4 tonnes.
Ghana is one of the major producers of cocoa in the world and the government says production this season would be enhanced by an improved supply of inputs to farmers and expectations for favourable weather.
However, surplus cocoa could hurt revenue prospects for the West African country, which is struggling to improve its infrastructure base and stabilise the wobbly economy amid falling prices of oil and gold.
"The market is projected to register a small surplus in the 2015/16 season on account of a rebound of production in Ghana, due to greater use of inputs and expectations for better weather," Ghana's Finance minister Seth Terkper told parliament last Friday.
Terkper attributed the projected surplus to weak growth in global demand for cocoa next year as grinding margins remain poor.
Cocoa prices rose in the second quarter of 2015 as a result of weather-related supply shortfalls in Ghana but demand remains strong.
The prices are expected to peak in 2015 before lowering at the beginning of 2016 to the end of the forecast period in 2019, according to the Business Monitor International report published in October.
Terkper said earnings from cocoa beans and products exports amounted to $1,921.7 million in September, 2015, which was almost equal to $ 1,921.7 realised in the same period in 2014.
The earnings from cocoa beans were $1,340.4 million, after the price rose by 22.2 percent to $2,990.9 per ton while exports declined by 21 percent to 448,148.4 tonnes.
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