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.

  • All
  • Articles
  • Financial news
  • Market Update
Europe Reduces Gas Demand Amidst Ukraine Crisis

21 February 2024

Since the Russian invasion of Ukraine, Europe has decreased its gas demand by 20 percent, reaching the lowest level in a decade. Consumption has been curbed, and gas from Russia has been replaced by LNG (liquefied natural gas). The decline has been particularly noticeable in large countries such as Germany, Italy, and the United Kingdom, […]

Cocoa Prices Soar: Challenges and Impacts on Chocolate Industry

14 February 2024

There appears to be no halt in the upward trajectory of cocoa bean prices. In 2023, cocoa emerged as the top-performing commodity, skyrocketing by 65%. Just two months into the new year, there’s already another surge of over 40%. This places cocoa, the vital ingredient for chocolate, at the forefront of Bloomberg’s data aggregator overview […]

European Central Bank Official Discusses Blockchain Technology’s Potential Impact on Financial Sector

13 February 2024

Blockchain technology is still in an exploratory phase in the European financial sector, but widespread adoption in wholesale payments is expected in the coming years, prompting central banks to take action. This was stated by European Central Bank member Piero Cipollone while opening the 30th Assiom Forex Congress in Genoa, emphasizing that “central banks cannot […]

Prev
123

Subscribe to our free newsletter!

You have been successfully Subscribed! Ops! Something went wrong, please try again.

Stay informed about the economy and financial markets. Reading financial insights and market news can help individuals make more informed investment decisions. It can also provide information on economic trends and events that may affect the performance of different investments. Additionally, it can help individuals stay up-to-date on changes in government policies and regulations that could impact the financial markets. Overall, staying informed about financial and market news can help individuals make more informed decisions about their investments and manage their financial portfolios more effectively.