Confectionery industry under pressure as cocoa prices rise and Ghana sees economic recovery

The global agricultural market is currently experiencing stability, with investors anticipating the Federal Reserve's interest rate decision, amidst concerns over rising cocoa prices in the chocolate industry. Cocoa prices have seen a significant increase over the past year, peaking at an all-time high in April 2024, before a 34% decrease due to forecasts of better weather conditions in West Africa, the main cocoa production region. Despite this decrease, volatility in the cocoa market continues to pose a threat to chocolate manufacturers, impacting profit margins and increasing costs, especially for small producers and independent brands.

In West Africa, Ghana is experiencing economic recovery with a growth rate of 6.9% in Q2 2024, primarily driven by the natural resource extraction sectors. However, the cocoa sector is contracting due to crop diseases and adverse weather conditions, which is negatively affecting the country's trade balance. Despite these challenges, there are expectations of market stabilization with the recovery of harvests, although uncertainty remains due to climate and phytosanitary risks, as well as the influence of global monetary policies on international trade and consumer purchasing power.