Cocoa prices hit record highs amid global shortage

Published 2024년 12월 23일

Tridge summary

Cocoa prices have surged to over $10,000 per tonne, marking a six-month high with a 50% increase from the previous month, as reported by Coface. This price hike is attributed to adverse weather conditions in Côte d'Ivoire and Ghana, the world's leading cocoa producers, and a limited response from other countries, resulting in a reduced global supply. The global cocoa production is projected to fall short of the demand by 400,000 tonnes in the 2023/2024 campaign, with an anticipated deficit of 1.2 million tonnes by 2025. The industry faces challenges such as supply instability, high prices, and the need to enhance milling capacity. The situation underscores the necessity for sustainability and diversification within the cocoa supply chain to ensure market stability.

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

Original content

The price of cocoa has exceeded $10,000 per tonne, marking a six-month high and reflecting a 50% increase compared to the previous month, according to Coface analysis. This rebound is due to a combination of structural and cyclical factors affecting both supply and demand. Côte d'Ivoire and Ghana, which together account for 58% of global cocoa production, have experienced adverse weather conditions that have significantly reduced harvests. This decline, coupled with the inability of other producing countries to make up for the shortfall, has limited global supply. For the 2024/2025 campaign, world cocoa production is expected to reach 5 million tonnes, insufficient to meet growing demand, especially in Europe and North America. During the 2023/2024 campaign, the supply deficit exceeded 400,000 tonnes, and projections point to an even greater imbalance in 2025. Demand in emerging markets such as Asia, the Middle East and South America continues to rise, even in the face of high ...

Source: Financialfood