The global cocoa crisis grows; prices doubled in 3 months

Published 2024년 3월 26일

Tridge summary

Cocoa prices have soared to an all-time high of over $9,600 per ton on the New York Mercantile Exchange, driven by supply shortages in West Africa, particularly in Ivory Coast and Ghana, which are responsible for 60% of the world's cocoa production. This price surge, attributed to climate-induced shortages, diseases, and high seed costs, has led to a projected 8% decrease in supply for the 2023-2024 season, resulting in a significant price increase of more than 150% in the last three months. Despite these record prices, cocoa farmers in the major producing countries have not seen the benefits, as much of their harvest was sold at lower prices earlier. Additionally, the article sheds light on the severe issue of child labor within the cocoa industry, revealing that around 1.5 million children aged 5-17 are involved in cocoa production, highlighting the urgent need for interventions to address this problem.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

While cocoa prices reached a historical peak as climate factors in West Africa put chocolate producers in a difficult situation in terms of supplying cocoa, the price per ton of cocoa for May delivery traded on the New York Mercantile Exchange reached the highest price of all time, exceeding 9 thousand 600 dollars. According to data analytics and consultancy firm GlobalData, a decrease of approximately 8 percent in cocoa supply is predicted in the 2023-2024 season compared to the previous 12 months, and the main reason for the losses is; Problems in the two largest suppliers, Ivory Coast and Ghana, were cited. Cocoa prices continued to break records as major cocoa factories in Ivory Coast and Ghana decided to cut or stop production because they could not cover seed costs. A significantly lower cocoa harvest is expected in Ivory Coast, the most important producing country. Ivory Coast accounts for approximately 45 percent of the world's cocoa supply. However, the harvest in other ...

Source: Haber7