• Fri. May 24th, 2024

Cocoa prices hit new highs in recent months, marking unprecedented territory in the chocolate industry

BySamantha Nguyen

Mar 27, 2024
Cocoa Prices Surging Faster Than Bitcoin, Stabilization Not Expected Soon

Cocoa prices have been on a steady rise for months, with one ton now costing more than $10,000. The increase is due to disappointing harvests and there is no sign of stabilization on the horizon. Despite these challenges, investing in cocoa could prove to be profitable as the price has reached unprecedented heights in recent months.

On the New York futures market, $10,047 was paid for a ton of cocoa beans on Tuesday, marking an 186 percent increase compared to a month ago when cocoa cost almost $6,000 per ton and a year ago when it was just under $3,000. This increase is even faster than that of Bitcoin, which has risen 150 percent.

The high price of cocoa can be attributed to poor harvests caused by older and diseased trees as well as weather phenomenon El Niño which led to drought in Africa. More than 60 percent of global cocoa production takes place in Ghana and the Ivory Coast where extreme weather conditions have halved harvests. Efforts are underway to increase cocoa production in Brazil and Ecuador but it will take years for these trees to bear fruit.

Belgian chocolate producers face a challenge in the coming years as the industry is worth 6.1 billion euros with exports accounting for 3.4 billion euros. Belgium is the world’s second largest exporter of chocolate representing 11 percent of the world market. The port of Antwerp is also the largest storage location for cocoa beans in the world.

As a result of the high cocoa prices, the cost of chocolate is expected to increase but not as quickly as the price of cocoa itself. Large companies like Hershey and Mondelez have already indicated that consumers will have to pay more for their products while Belgian producers like Libeert can protect themselves against these record prices by buying cocoa at times when the price is low.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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