Brazil: Amid record high cocoa prices on the stock exchange, the industry seeks to expand supply

Cocoa Bean

Cocoa Products

Brazil

Market & Price Trends

Published Mar 26, 2024

Tridge summary

Cocoa prices have soared to record levels on the New York Stock Exchange due to a significant decrease in production from the top producers, Ivory Coast and Ghana, primarily because of climate challenges and aging cocoa trees. In an effort to counteract this decline and the potential global cocoa supply deficit, multinational corporations such as Cargill and Nestlé are turning to Brazil, a country previously devastated by witches' broom disease but now on the path to cocoa production recovery. Through initiatives aimed at enhancing supply and sustainability, including the Nestlé Cocoa Plan which focuses on purchasing sustainably produced cocoa, these companies are investing in the region's cocoa sector. This has led to the establishment of new cocoa plantations in Brazil, signaling a promising shift towards mitigating the global cocoa shortage.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

In a scenario in which cocoa prices have been breaking records day after day on international stock exchanges, giant chocolate companies operating in Brazil are beginning to see the results of revitalization and cultural stimulation programs implemented by them in the country to increase supply. Yesterday, for the first time in history, the cocoa contract expiring in May ended the trading session at US$ 9,649 per ton, with a daily increase of 7.94%, on the New York Stock Exchange. Now, analysts who previously saw a price peak of US$10,000 are beginning to see an even greater value, says Ale Delara, partner at Pine Agronegócios. “The main crop harvest in Ivory Coast will be the smallest in the last 23 years. The shortage of product is already leading analysts to see an increase that could lead to cocoa reaching US$12,000 per ton in New York,” he states. What has made cocoa soar are the recurring deficits in international supply, as Ivory Coast and Ghana, the world's largest ...

Source: Mercado Do Cacau