By Frederick OFORI-MENSAH
Ghana, traditionally celebrated for its cocoa exports, has a rich history of coffee cultivation that has experienced significant fluctuations over the centuries.
In recent years, there has been a renewed interest in revitalizing the coffee sector, positioning it as a potential major export crop. This article explores the historical context of coffee production in Ghana, government initiatives from the 1980s, the challenges faced by abandoned farms, and strategies to enhance Ghana’s competitiveness in the global coffee market, particularly concerning Robusta beans and fair trade compliance.
Historical overview of coffee production in Ghana
Coffee was introduced to Ghana in the 18th century by missionaries and colonial administrators, becoming a key export crop by the late 19th and early 20th centuries. By the 1930s, coffee plantations were widespread across the Eastern, Central, and Ashanti regions, producing significant quantities of beans for export. However, competition from cocoa, which fetched higher prices on international markets, diverted farmers’ attention. As a result, coffee production began to decline.
According to the International Coffee Organization (ICO), Ghana’s coffee exports peaked in the mid-20th century but declined sharply by the 1980s due to fluctuating global coffee prices, limited government support, and lack of infrastructure. By the early 2000s, coffee production was at its lowest, contributing less than 0.1percent to the country’s total agricultural exports. While Ghana’s climate and soil conditions remain ideal for coffee cultivation, the industry has struggled to regain its former prominence.
Government initiatives in the 1980s and abandoned farms
In the 1980s, the Ghanaian government recognized the potential of coffee to diversify its agricultural exports. Under the Economic Recovery Programme (ERP) initiated by the International Monetary Fund (IMF) and the World Bank, efforts were made to rehabilitate abandoned coffee farms. This included the establishment of state-managed coffee plantations, distribution of high-yielding Robusta seedlings, and financial incentives for smallholder farmers. The goal was to transform Ghana into a competitive coffee-producing nation.
However, these initiatives faced significant challenges:
- Price volatility: The collapse of international coffee prices in the late 1980s and early 1990s rendered the crop less profitable, leading many farmers to abandon their farms.
- Limited technical support: Farmers lacked access to modern agricultural practices, fertilizers, and pest control measures, which affected yields and the quality of the coffee produced.
- Infrastructure deficiency: Poor roads and inadequate processing facilities increased post-harvest losses, further discouraging farmers.
By 2010, an estimated 70percent of coffee farms established during the ERP had been abandoned or converted to cocoa farms, which offered more stable income opportunities. Additionally, the lack of consistent government policy and the absence of marketing boards dedicated to coffee hindered the development of the sector.
Revitalization Efforts and the Role of Robusta Beans
Recognizing the untapped potential of coffee, the Ghana Cocoa Board (COCOBOD) launched the Coffee Rehabilitation Project (CRP) in 2011. The initiative aimed to:
- Rehabilitate over 15,000 hectares of coffee plantations
- Provide improved Robusta coffee seedlings to farmers
- Establish modern coffee processing facilities to enhance value addition
Robusta coffee, which thrives in Ghana’s tropical climate, has historically been undervalued compared to Arabica. However, global demand for Robusta beans has been growing due to their higher caffeine content, resistance to pests, and suitability for instant coffee and espresso blends. According to the International Trade Centre (ITC), Robusta now accounts for approximately 40percent of global coffee production, with major markets in Asia and Europe driving its growth.
Despite these promising trends, Ghana’s contribution to global coffee production remains minimal. In 2022, the country produced an estimated 7,000 metric tonnes of coffee, far behind leading producers like Vietnam (1.8 million tonnes) and Brazil (3.5 million tonnes). Ghana’s share in the global coffee market remains negligible, partly due to limited investments in research, development, and marketing strategies tailored for coffee production.
Fair trade compliance and global market competitiveness
Global coffee chains, such as Starbucks, Nespresso, and Lavazza, increasingly demand that suppliers adhere to fair trade standards. These standards ensure ethical labor practices, sustainable farming methods, and fair pricing for farmers. For Ghana to compete in this space, it must address the following:
- Certification programmes: Ghanaian coffee farmers need access to fair trade and organic certification schemes. These certifications can attract premium prices on international markets. Certification agencies, such as Fairtrade International and Rainforest Alliance, provide training and monitoring systems that can elevate Ghanaian coffee to meet global standards.
- Farmer training: Investing in training programmes on sustainable farming practices, quality control, and post-harvest processing can enhance the marketability of Ghanaian coffee. High-quality beans are often sought after by specialty coffee markets, which prioritize flavor, origin, and sustainability.
- Infrastructure development: Modernizing transportation networks and processing facilities can reduce production costs and improve the quality of exports. For instance, installing solar-powered drying systems and modern milling equipment can significantly enhance the consistency and flavor profile of Ghana’s coffee.
- Domestic consumption: Promoting coffee consumption within Ghana can create a stable local market, reducing reliance on volatile export markets. Currently, per capita coffee consumption in Ghana is less than 0.1 kilograms annually, compared to 5.3 kilograms in Finland, the world’s largest coffee consumer. Encouraging a coffee culture through marketing campaigns, coffee shops, and barista training programmes can stimulate local demand.
The economic potential of coffee exports
The global coffee market is valued at approximately US$460 billion (2023), with demand projected to grow at a compound annual growth rate (CAGR) of 4.28percent through 2030. Robusta coffee, in particular, is expected to see significant growth due to its use in emerging markets and the rising popularity of espresso-based beverages. Additionally, the rise of e-commerce platforms has enabled small-scale farmers in developing countries to sell directly to international buyers, creating opportunities for Ghanaian producers.
By strategically positioning itself, Ghana could increase its coffee exports to capture a share of this lucrative market. Leveraging partnerships with international coffee chains and organizations can provide the technical expertise and funding needed to scale up production. Additionally, fostering public-private partnerships can accelerate the development of export-oriented coffee initiatives.
Conclusion
Ghana’s coffee industry holds immense potential as a major export crop. By leveraging its favorable climate for Robusta cultivation, implementing fair trade practices, and investing in infrastructure and farmer training, Ghana can revitalize its coffee sector. The President’s Accelerated Export Programme presents a unique opportunity to diversify the country’s agricultural exports, positioning coffee alongside cocoa as a pillar of Ghana’s economy. With strategic planning, sustained investment, and a commitment to fair trade principles, Ghana can establish itself as a competitive player in the global coffee market, paving the way for economic growth and agricultural diversification.
>>>the writer is an experienced investment advisor with 15+ years in portfolio management, financial research, and corporate advisory, holding advanced expertise from London Business School and Cass Business School. He can be reached via [email protected]
