(3 Minutes Read) (Global)
Cocoa prices have reached unprecedented heights in the international market as yield drops in Ghana and Côte d’Ivoire, with economists projecting no downward trend through 2024.
Cocoa prices have more than doubled since the beginning of last year, reaching an all-time high of USD 9,010.59 per ton on the New York commodities market in the second week of February.
Unfavorable weather conditions, smuggling, and swollen shoot disease are said to have contributed to the price increase, resulting in lower crop yields in Côte d’Ivoire, which produces nearly 40% of the world’s cocoa bean, and Ghana, which produces 20%. Strong seasonal winds and a lack of rainfall have also contributed to the shortage, forcing traders to scramble for supplies and driving prices up.
In a report by ingredients supplier Henley Bridge, cocoa price increases of 15-20% for the first half of 2024 are expected to continue for the remainder of the year. This surge in pricing has already had a ripple effect on the industry, with chocolate makers adjusting their operations to stay afloat. Javier Blas, a London-based energy and commodities expert believes this is a necessary crisis. The world needs higher prices to encourage the re-planting of millions of old trees — and take better care of the current ones.
Read Also:
https://trendsnafrica.com/global-cocoa-prices-hit-the-roof/
https://trendsnafrica.com/ghanas-cocoa-processing-units-stares-at-acute-bean-shortage/
https://trendsnafrica.com/cocoa-farmers-in-ghana-faces-threat-from-illegal-miners/
The implications of the cocoa scarcity go beyond the chocolate business. Other products that use cocoa as an ingredient, such as cosmetics and pharmaceuticals, may see price increases or supply chain disruptions. Emerging economies, particularly those with a high demand for chocolate, may experience difficulty supplying customer demands.
