US: Cocoa sector reaches crisis point as crop prices hit $10,000 a tonne

Published 2024년 3월 27일

Tridge summary

Cocoa prices have skyrocketed to an all-time high of $10,000 a tonne, a result of poor harvests, supply deficits, and disease in top producing countries like Ghana and Ivory Coast, creating a 'perfect storm' that has significantly impacted the confectionery industry. This price surge has led to major disruptions for companies, with smaller chocolate brands facing the risk of closure within the next year unless consumers are willing to pay more for their products. Despite the market price increase, farmers in West Africa continue to earn below poverty-line wages, prompting calls for systemic market changes and potential agricultural strikes. Industry experts and company founders are urging for immediate action to address the crisis, with some considering cocoa-free alternatives. Meanwhile, companies like Love Cocoa and H!P Chocolate see this as an opportunity for innovation and the development of sustainable chocolate alternatives, amidst concerns over climate change and speculative trading exacerbating the situation.

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

Original content

Cocoa prices on the stock exchange hit a renewed high yesterday, with the Futures market touching the $10,000 a tonne mark for the first time ever, as prices more than treble in the space of a year, causing widespread industry concern, writes Neill Barston. As Confectionery Production reported just last month, prices had hit a trading high of more than $6,000 on the US market, amid a combined ‘perfect storm’ of poor harvests, deficits in supplies, and crops impacted significantly by disease in core producing nations of Ghana and Ivory Coast, leaving many sector analysts fearing the long-term impact on the industry. In the space of just a few short weeks, the situation has worsened further, with prices continuing to spiral upwards – (though the stock exchange high – which was billed as a 46 year high – is only in nominal terms not accounting for inflation (with the previous peak in 1977 being around $5,700, which would be worth $28,000 in today’s money, the rapid price spikes seen ...

Source: Confectioneryproduction