Cocoa futures have reached an all-time high, driven by a combination of poor harvests in West Africa and ongoing supply disruptions.
Cocoa prices have reached a new record, according to Bloomberg. On Monday, cocoa futures rose by 4.8%, reaching $11,839 per ton. This surge marks a nearly threefold increase in cocoa prices this year, which has forced chocolate manufacturers to raise their prices.
The price hike began earlier in the year when low harvests in West Africa, the world’s largest cocoa-producing region, led to a third consecutive global supply shortage. After a brief lull, cocoa prices have surged again as adverse weather conditions continue to threaten the region, limiting the prospects of replenishing already low global stocks.
The supply issues are exacerbated by cocoa diseases and low wages for farmers. Additionally, new cocoa trees require several years to begin producing, further delaying the recovery of cocoa production.
Experts predict that cocoa prices may decrease in the coming year as higher prices are likely to encourage increased production and dampen consumption.
This price increase follows a similar trend seen in coffee, which also reached record highs amid rising concerns about global supply shortages.
| Key Cocoa Price Trends | Information |
|---|---|
| Cocoa Futures Price | $11,839 per ton (4.8% rise on Monday) |
| Annual Price Increase | Nearly three times higher than last year |
| Key Causes | Poor harvests in West Africa, adverse weather, cocoa diseases, low wages for farmers |
| Predictions | Potential decrease in prices next year as production increases |
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