Rising cocoa prices expose global market weaknesses and challenges in Ghana

Published 2024년 12월 16일

Tridge summary

The global cocoa market is experiencing a surge in prices due to low supply and efforts to curb demand. The potential for prices to reach their April highs, when they were at $12,261 per ton, is becoming increasingly likely. In Ghana, the world's second-largest cocoa producer, the entity responsible for market regulation, Cocobod, is grappling with financing challenges, which has led to reliance on large international traders for loans. This reliance has diminished independent local companies, leaving small businesses marginalized. Ghana's expected harvest of 650,000 tons, a 20% decrease from initial forecasts, and the net long position of funds in the international market have contributed to price volatility. The potential for continued price increases poses challenges for industries and end consumers, with the price of cocoa-based products such as chocolate likely to rise.

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

Original content

By: Claudemir Zafalon The price of cocoa continues to rise steadily, pressured by limited supply and attempts to ration demand in the global market. The possibility of the market reaching the peaks recorded in April of this year, when the December contract reached US$ 12,261 per ton, is beginning to become a worrying reality for several players in the production chain. One of the biggest challenges lies at the heart of African production. In Ghana, the world's second largest cocoa producer, Cocobod – the entity responsible for regulating the sector – is facing increasing difficulties in accessing annual financing that historically depended on loans from international banks. These resources were essential to sustain the purchase of beans and provide inputs such as seedlings, chemicals and fertilizers to farmers. With the lack of traditional credit over the past year, Cocobod turned to large international traders, such as Cargill, Olam Group and Barry Callebaut, to finance its ...

Source: Mercado Do Cacau