Russia To Support Global Cocoa Productivity By Supplying Fertilizers To Ghana

Dmitry Mazepin, of the Russian Union of Industrialists and Entrepreneurs (RSPP) has said that Russia is looking to increase its fertilizer exports to Ghana. The West African country has experienced a decline in agricultural output in recent years, contributing to a global cocoa bean shortage and rising prices. Ghana, along with the Ivory Coast, are the largest producers of cocoa, accounting for more than 50% of the world´s production.

The move is interesting as it illustrates just how well Russia now understands global agricultural trade flows and has a key role in determining supply chains – which can also determine prices and inflation rates in markets such as the European Union.

Mazepin, who chairs the RSPP commission on fertilizer production said that Russia has extensive interests in Africa, with Ghana being strategically important, including its agricultural sector. He said that the RSPP “Will want to understand under what conditions we can expand our presence. Last year alone, Ghana imported about 100,000 tons of Russian fertilizers valued at about US$27.8 million. We want to increase these figures, so I will be flying in to see what opportunities we have.” Mazepin was previously the CEO of Russian fertilizer giant Uralchem.

Ghanaian President John Dramani Mahama, who took office in January, has pledged to ensure food security by increasing local production under the Agriculture for Economic Transformation Agenda. On February 14, the country’s agriculture minister told lawmakers that the government is determined to boost crop yield and secure Ghana’s position as the world’s second largest cocoa producer.

Russia is one of the world’s leading fertilizer producers. However, Western sanctions imposed on Moscow have affected deliveries. A total of 262,000 tons of Russian fertilizers were blocked at EU ports in Latvia, Estonia, Belgium, and the Netherlands. Moscow has instead offered to give the commodity for free to countries in need, including Africa, in order to strengthen the continent’s food security. Since 2022, Uralchem has supplied more than 134,000 tons of fertilizers to African nations free of charge. Over 111,000 tons have been shipped from European ports and warehouses to Malawi, Nigeria, Kenya, and Zimbabwe in collaboration with the UN World Food Program.

In November, Russian fertilizer producer PhosAgro reported a 41% surge in exports to Africa for the first nine months of 2024, compared to the same period of the previous year.

Interestingly, the EU is among the world’s largest importer of cocoa, with the Netherlands – who had prevented Russian ships laden with fertilizer from departing – the world’s largest consumer. After the EU sanctioned Russian fertilizer exports, according to Trading Economics, prices of cocoa rose from US$2,673 a tonne in January 2023 to US$12,241 in April 2024. They are currently trading at about US$8,442.