Latin America faces a new great opportunity in the cocoa market

Published 2024년 4월 1일

Tridge summary

The article highlights the challenges and opportunities within the global cocoa market, focusing on the impact of diseases on African cocoa crops, which represent about 70% of the world's supply, leading to increased cocoa prices. This situation offers a significant opportunity for Latin American countries like Ecuador and Brazil, where cocoa production is growing and less prone to diseases. With projections indicating a 5% increase in cocoa production in Latin America for the 2023/24 season, and the region's reputation for high-quality cocoa, the rise in prices could motivate producers to enhance their production chains. This includes efforts to increase production capacity, improve quality, and boost efficiency, presenting a promising outlook for Latin American cocoa in the global market.

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

Original content

The current spread of diseases in cocoa crops in Africa, which provide approximately 70% of global production, would be wreaking havoc on production. These pressures are driving prices to unprecedented levels, also impacting the chocolate market. However, Latin America could have a new opportunity on the horizon, with the biggest problems falling on West African producers, since their crops are on the rise and their plantations are less susceptible to this type of problem. According to Capital Economics projections, reported by Bloomberg Online, cocoa production is expected to increase around 5% in the 2023/24 season, with Ecuador contributing about 410,000 tons and Brazil 220,000 tons. Additionally, compound annual growth of approximately 4.3% is forecast over the period from 2024 to 2032. Latin America is estimated to benefit from the decline in West African production, as high cocoa prices have spurred increased planting in the region. Capital Economics points to the case of ...

Source: Mundomaritimo