Nothing seems to stop the surge in cocoa prices, which break new records almost daily on the markets.
Prices are propelled by catastrophic harvests, due in particular to excessive rains, in Ivory Coast and Ghana, the two largest producers.
With the looming supply deficit, the price of cocoa has more than doubled in New York as in London since the start of 2023. On Tuesday, the contract negotiated in New York for delivery in March occasionally reached its highest historical level, at more than 6,000 dollars (5,600 euros) per tonne, surpassing the 1977 peak. The drop in production was a major catalyst for the price explosion.
Also read: The price of cocoa is soaring, the reasons for a record
Farmers in West Africa have reported the development of diseases after too much rain, notably so-called “black pods”.
Cocoa needs a subtle alternation between sunshine and precipitation to flourish.
Ivory Coast is by far the largest cocoa producer in the world, followed by Ghana.
These two countries provided almost 60% of global production for the 2022-2023 harvest.
The drought associated with El Niño is expected to further exacerbate the situation, which could lead to a further decline in cocoa production.
The impact for growers promises to be all the more disastrous as the surge in prices of the precious bean could dampen demand, experts point out.
The surge in prices is weighing on the main chocolate manufacturers and is already having an impact on consumers.