Tridge summary
The global chocolate industry is grappling with a significant cocoa bean shortage, driving prices to a 46-year high of $10,000 per metric ton, largely due to adverse weather conditions like El Niño affecting West Africa, which produces 75% of the world's cocoa. This region, including Ghana, Ivory Coast, and Nigeria, faces challenges such as mining, diseases, and unsustainable practices that threaten cocoa production's long-term viability. Despite the potential for increased farmer earnings from higher cocoa prices, issues like low farmgate prices and poverty among farmers persist. Efforts are being made to address these challenges, including rehabilitation of plantations and protection from mining, but the industry's sustainability is at risk. This situation offers West Africa an opportunity to demand fairer trade practices and invest in sustainable production to secure its pivotal role in the global chocolate industry.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
The world’s facing a bittersweet situation when it comes to chocolate. While demand remains strong, a shortage of cocoa beans is causing prices to skyrocket. Cocoa prices have surged to a record-breaking $10,000 per metric ton. The last time cocoa futures were above even $5,000 was 46 years ago. These record price hikes are the result of adverse weather conditions and diseases impacting African cocoa production. The major culprit for the current cocoa crisis is El Niño, a weather phenomenon that brings drier conditions to West Africa. Drier weather stresses cocoa trees, leading to lower yields. This has cost Ghana nearly 500,000 hectares of land in recent years. The International Cocoa Organisation (ICCO) expects global cocoa production to fall by 10.9% this season due to this lack of rainfall. This has disrupted the supply chain. According to a report from Reuters, major African cocoa plants in Ivory Coast and Ghana have stopped processing because they can not afford to buy ...
Source: Venturesafrica
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