Cocoa futures have reached an unprecedented pinnacle of US$11,800 per tonne amidst widespread shortages and diminished harvests across West Africa.
Key cocoa-producing nations like Ghana, Côte d’Ivoire, Nigeria, and Cameroon, which collectively account for over 75% of global cocoa production, are grappling with significantly reduced crop yields. Factors such as unpredictable weather patterns, tree ailments, and insufficient investment have contributed to this decline, as noted by analysts at Trading Economics.
In 2024, cocoa prices have surged by over 150%, propelled by the most severe shortage of cocoa beans in decades, stemming from poor harvests in crucial West African regions.
Nevertheless, consumers persist in satisfying their sweet cravings despite the soaring costs.
Recent data indicates a slight downturn in cocoa processing activities, with a 2% decline in Europe, a marginal 0.1% drop in Asia, and a modest 4% increase in North America during the first quarter compared to the previous year. Expectations among traders, however, foresaw more significant declines of up to 6% in Europe and 8% in both Asia and North America.
Senior commodity analysts at ArrowStream expressed surprise at the resilience of these processing numbers, stating in a Bloomberg interview that the grindings figures fall short of the deterioration needed to halt the ongoing rally.
