W13 Cocoa Beans Update: Cocoa Price Reaches Record High, and Ecuador Aims to Boost Cocoa Exports to USD 1.8 to 2 Billion in 2024

EU Regulations and Declining Ivory Coast Harvest to Impacted Cocoa Prices

The price of cocoa has hit a record high, surpassing USD 9.6 thousand per metric ton (mt) and exceeding copper prices for the first time since 2003. This increase is mainly due to lower production in the Ivory Coast and Ghana, caused by diseases and climate challenges. Another contributing factor is European Commission Regulation 1115, which aims to prohibit imports of raw materials, including cocoa, from deforested lands, further pushing up prices. Despite some challenges, such as liquidity issues for exporters in Ecuador due to the price hike, the country benefits from high prices paid directly to producers. Ecuador is expected to significantly increase its cocoa exports, possibly reaching USD 1.8 to 2 billion in 2024, making it the country's third-largest non-oil export. Moreover, Ecuador has seen a 5% annual increase in production per hectare (ha) over the last five years due to efforts by the private sector, reduced deforestation, and the elimination of child labor, according to Anecacao. Moreover, the price rise is also influenced by a shortage in Vietnam and low inventories in consumer markets. Illegal gold mining in cocoa-growing regions in Africa further exacerbates concerns over cocoa supply.

Egypt's Potential as a Cocoa Cultivation Center Highlighted by Farmers Syndicate Head

Due to its climate similarities with West Africa, the General Farmers Syndicate's head emphasized Egypt's potential as a significant cocoa cultivation center, especially in southern Upper Egypt. With cocoa prices at USD 10 thousand per mt, this venture offers substantial economic benefits. He called for support from the Agricultural Research Center and the Ministry of Agriculture to promote cocoa cultivation through research, farmer education, and seed provision. They also highlighted cocoa's economic and health benefits and the need to address challenges traditional cocoa-producing regions face.