Cocoa prices reach a 44-year high

2023 10 25T131433Z 2 LYNXMPEJ9O0JY RTROPTP 4 COCOA IVORYCOAST WEATHER scaled
FILE PHOTO: Farmers work at a farm in Sinfra, Ivory Coast April 29, 2023. REUTERS/Luc Gnago/File Photo

Cocoa prices have recently experienced a remarkable surge, reaching their highest level in 44 years due to worldwide shortages, leading to increased production costs for chocolate manufacturers. In New York, futures trading saw a notable increase of up to 2.5%, marking the highest point for the most actively traded contract since 1979. The driving forces behind this surge are predictions of poor crop yields in the primary cocoa-producing nations, Ivory Coast and Ghana, occurring at the same time as a noticeable improvement in demand.

Cocoa for December delivery soared to $3,786 per metric tonne in New York, reaching its highest value since January 1979. This price surpasses a previous peak reached in March 2011, when a civil war in Ivory Coast led to a cocoa export ban. The key ingredient for chocolate production has surged by more than 40% this year, making it the commodity with the most substantial increase.

Bean deliveries to ports in Ivory Coast are approximately 16% behind this season, and analysts are anticipating a third consecutive deficit for this essential chocolate ingredient. Adding to these concerns is the looming threat of a strong El Niño, which could bring drought conditions to West Africa, further damaging cocoa crops. Demand is also on the rise, as bean processing in Europe is performing better than expected. Ivory Coast and Brazil are both increasing their cocoa processing activities.

In the past, cocoa prices surged during the 1970s due to supply shortages, reaching a peak of $5,379 per tonne in July 1977.

 

More from Qonversations

News

antusias penonton fiba world cup di indonesia arena gbk 3 169

GBK declared first sport venue to use 100% renewable energy

News

AFP 20240218 34JM2XT v1 HighRes GermanyDiplomacyPoliticsSecurityMsc

Why Palestinian Authority’s prime minister and government have resigned

News

2024 02 23T100701Z 1 LYNXNPEK1M0A2 RTROPTP 4 GERMANY CANNABIS

Germany legalizes cannabis

News

feb1ad24 1558 444d 8e7d f6aa6ad72ce7

4-month-old Indian baby stuns world with special talent

Front of mind
Screenshot 2024 02 09 at 10.47.42

How to win elections in Africa – Chike Ukaegbu

Ismail Akwei

Presidential elections in Africa have gone through many cycles since the 1950s when Ghana became the first country […]

Read more
Screenshot 2024 01 21 at 07.33.15 scaled

How China can help revive agribusiness in the Caribbean

Eleanor Sa-Carneiro

Against the backdrop of the Caribbean, Trinidad and Tobago’s Fine Cocoa Company is setting sail into the waters […]

Read more