Cocoa prices have reached their highest level in 46 years due to heavy rainfall in cocoa-producing countries, which has led to the spread of diseases among crops and hindered work on plantations. According to a recent report, a ton of cocoa on a term contract in New York has risen by 1.5% to around €3,813, the highest level since 1977. Ivory Coast and Ghana, which together account for more than half of the world’s cocoa exports, have been hit hard by the rainfall and subsequent disease outbreaks.
The amount of cocoa arriving at ports in Ivory Coast, for example, has decreased by a third compared to the same period last year. This decline in cocoa supply has led to an increase in prices, as demand for cocoa remains strong. The International Cocoa Organization, a union of cocoa-exporting countries, predicted in September that there would be a shortage of 100,000 tons of cocoa this year. However, the organization noted that some farmers in Ivory Coast and Ghana are holding onto their cocoa in hopes of getting a higher price next season. This has led to a decrease in the amount of cocoa available for export, further contributing to the price increase. The price hike has been felt across the industry, from farmers to chocolate makers. Chocolate companies are struggling to keep up with the rising costs of raw materials, and some have been forced to pass on the costs to consumers. This has led to higher prices for chocolate products, which could have a ripple effect throughout the supply chain. The cocoa market is highly volatile, and prices can fluctuate greatly based on factors such as weather conditions, disease outbreaks, and geopolitical events. The current price hike is expected to continue until the next harvest season, which could have a significant impact on the industry and consumers.
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