Cocoa is a major cash crop in west Africa generating significant export revenue for producing countries and providing a source of income for about 20 million people. According to the international cocoa organization (ICCO) some three quarters of the world’s cocoa originates from Africa, other producing countries are found in South America and Asia.
Nearly all the cocoa produced in Africa is concentrated in the western region, mainly from Côte d’Ivoire and Ghana, the world’s top two producers with a combined production of 62% of global cocoa output.
The region boasts of four of the top five cocoa producers, with Cameroon and Nigeria taking the fourth and fifth spots between them each with between 7% and 8% of global production. Other countries in the region also contribute smaller harvests, including Liberia, which is looking towards cash crops such as cocoa to rebuild its economy.
Cocoa producing west African countries have a thriving agricultural sector which contributes strongly to GDP at rates between 14% and 40% depending on the economy. Agriculture is also a major employer in the region, with the cocoa sector in particular being largely cultivated by smallholder farmers who rely on cocoa as their primary source of interest.
However because cocoa produced in West Africa is largely sold as a raw commodity, producing countries retain only a small proportion of the global cocoa market’s value, which stood at $45billion in 2019 and is expected to reach $61billion in 2027.
Cocoa is the main ingredient in chocolate which has a large market value and is expected to grow beyond in the coming years.
However, the African cocoa producer receives only 4% of the profits from the chocolate they buy at the supermarket, while the manufacturer and distributor earns 75%.
