May 17, 2024
05:36
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Cocoa supply expected to fall short of demand by about 8.5%
The entire world loves chocolate. But as cocoa bean prices skyrocket, the ordinary bar of chocolate could soon become a luxury item. Prices are going through the roof. And here's why... African nations dominate the global cocoa trade. Cot DUVA, Ghana, Cameroon and Nigeria produce 70 percent of the cocoa beans consumed globally. But what's driving prices so HIGH? Some farmers and insiders blame it on the wave of illegal GOLD mining. As a result, thousands of trees have been wiped out and many farmers sold their land. Before 2024, the historic HIGH for cocoa sat around 5-thousand dollars per metric tonne. This year, cocoa has traded as high as 12-thousand dollars. For the third year in a row, cocoa supply is expected to fall short of demand by about 8.5%. Next year, another deficit looms as extreme storms and heatwaves caused by global warming are damaging cocoa crops. So as the cocoa prices go up, companies are left with two choices. Reduce the size of their products or put up prices. The true outcome is probably both. Companies will have to accept lower profits and consumers will have to pay a higher price. And the days of cheap chocolate may soon be over.
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