Michelle Thompson‘It’s upsetting because we haven’t seen such a substantial decline in cocoa output in recent years,’ the president of Ghana cocoa purchasers organization tells Anadolu.
Chocolate fans around the world may have to brace themselves for a sweet treat shortage as cocoa prices reach unprecedented highs, with economists predicting no downward trend until 2024.
Cocoa prices have more than doubled since the beginning of last year, reaching an all-time high of $9,010.59 a ton on the New York commodities exchange in the second week of February.
Unfavorable weather, smuggling, and swollen shoot disease are thought to have contributed to the price increase, resulting in reduced crop yields in Ivory Coast, which produces roughly 40% of the world’s cocoa bean, and Ghana, which produces 20%.
El Nino, a climatic phenomenon that produces drought in West Africa, has had a substantial impact on cocoa output in these countries.
Strong seasonal winds and a lack of rainfall have also exacerbated the shortfall, causing dealers to hunt for supply and driving prices higher.
Chocolate manufacturers are prepared for a decrease in demand as core ingredient costs rise.
According to ingredients supplier Henley Bridge, cocoa price hikes of 15-20% in the first half of 2024 are projected to continue throughout the year.
This increase in price has already had an impact on the business, with chocolate manufacturers changing their processes to stay afloat.
“It’s upsetting because we haven’t seen such a significant decrease in cocoa output in recent years,” Samuel Adimado, head of the Ghana Cocoa Buyers Group, told Anadolu, expressing alarm over the cocoa production decline.
“Not only have we observed a drop in production, but we’ve also had to scale back our operations, including layoffs and the termination of contracts for some staff members,” he said.
Javier Blas, a London-based energy and commodities analyst and Bloomberg opinion columnist, argues that “this is a necessary crisis.”
“The world needs higher prices to encourage the re-planting of millions of old trees — and take better care of the current ones,” he wrote in a recent X.com essay.
The effects of cocoa scarcity extend beyond the chocolate industry.
Other products using cocoa, such as cosmetics and pharmaceuticals, may see price rises or supply chain disruptions.
Emerging economies, particularly those with a high demand for chocolate, may face difficulties meeting client needs.
