Cocoa prices have recently hit a record high, surpassing $10,000 per ton for the first time, primarily due to suboptimal crop yields in West Africa. This marks the third consecutive year of a supply deficit in the global market. The significant price increase is largely attributed to a combination of adverse weather conditions, disease outbreaks, and financial challenges in Ghana, which is the world's second-largest cocoa producer. Together, Ivory Coast and Ghana, which are the leading cocoa producers globally, have encountered severe issues such as heavy rainfall, black pod disease, and inadequate infrastructure. These challenges have had a profound impact on the global cocoa supply, as these two countries produce about two-thirds of the world's cocoa beans.
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
Cocoa prices rose by more than $700 per ton in one day, and for the first time in history, its price exceeded $10,000. The market has been rocked by bad crops at key producers in West Africa, pushing the world into a third straight annual supply deficit. The industry is grappling with a legacy of low returns paid to cocoa farmers and fears are growing about being able to supply enough beans. Cocoa futures in New York rose for a fourth straight day, adding to the price after news of financial problems in Ghana, the world's second-largest cocoa producer. The country may soon lose access to a key financial mechanism as the cocoa crop crisis has left the country without enough cocoa beans to get the money. The two biggest producers, Ivory Coast and Ghana, have recently been hit by a combination of heavy rain, dry heat and disease. Late last year, heavy rain and the spread of black pod disease in both countries affected agriculture, according to a ...
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