Cocoa beans increase in price more crazily than gold: market is scarce, Vietnam is the 10th largest producer in the world

Record high cocoa prices on April 18, as reported by the Financial Times, are attributed to severe crop failures in West Africa, particularly in Côte d'Ivoire and Ghana, which are the world's leading cocoa producers. These failures have exacerbated a preexisting shortage, driving futures in London to an all-time high of 9,477 pounds a ton, marking a significant increase since the beginning of the year. The price surge is further aggravated by demand exceeding available beans. The European Cocoa Association reported a 2.5% decrease in crushed cocoa beans in the first quarter of the year, indicating a persistent challenge for traders, processors, and manufacturers to meet demand. As a result, global cocoa prices have more than doubled since the beginning of the year, reaching levels higher than some precious metals and Bitcoin. To mitigate the impact on farmers, both Ghana and Côte d'Ivoire have increased the prices paid to farmers and have negotiated to delay bean deliveries. Meanwhile, Vietnam, as the 10th largest cocoa producer, is expanding its cocoa cultivation area to meet global demand, with significant growth in exports expected.