Michael H.’s Post

Have climate-related supply crunches in the cacao sector lead to arabica coffee’s sharp pricing increases recently? Despite Brazil & Columbia’s production climbing steadily, we’re seeing prices sky rocket in the specialty coffee industry. “Brazil’s 2023/24 arabica production will climb by 12.8% year-on-year to 44.9 million bags, due to higher yields and increased planted acreage. In Colombia, the world’s second-largest arabica producer, it will climb up by 7.5%.” ☕️ The increase in price of cacao doesn’t affect coffee production at all, yet we’re still feeling the impact of overall soft commodity sector surges. 📈 This isn’t a matter of supply & demand, it’s a much wider climate based issue, with market speculation across the soft commodity sector increasing prices for suppliers, roasters & consumers alike. 🫂 Do cacao & specialty coffee businesses need to work together to address the climate problem? How do we share agritech innovation across sectors & geographical locations? A more consistent supply chain will surely be mutually beneficial. Time will tell. https://lnkd.in/eKMhc34d

Global #cocoa prices are soaring to 276% YoY, with environmental factors like dry conditions and crop diseases constraining production in Ivory Coast and Ghana, which collectively produce more than two-thirds of the world's cocoa. Read our analysis to learn more about how these challenges affect the global #chocolate industry: https://hubs.la/Q02v_sx40 #EmpowerTomorrow

🌍 Understanding the Global Cacao Market and its Dynamics The global cacao market is at a crossroads in 2024. As cacao prices soar due to increased demand and climate challenges, West Africa continues to dominate production. Yet unpredictable weather and supply chain disruptions are shaking up the industry, making it difficult for many chocolate producers to secure sufficient supply. Why does this matter? Rising prices are the direct result of years of sluggish crop extension. Farmers had little to no incentive to invest in their crops as market prices barely covered the subsistence level. If you wish to read further, find our blog article on the state of the global cacao market here: https://lnkd.in/dJdpwVPp To pave the way towards a brighter future, now is the time for companies to invest in resilient farming practices and transparent, fair supply chains. As consumer awareness grows, there's a clear demand for ethically sourced cacao - we will cover this topic in our next blog article, so stay tuned! If you are interested in sourcing ethically traded, fine cacao from IKAT, you find more information on our product range on our B2B website: https://lnkd.in/dc8DUf4R Join the movement to create a sustainable and ethical future for cacao! 🌱✨ #CacaoMarket #Sustainability #SustainableFarming #FairTrade #EthicalBusiness #FoodIndustry #CacaoRevolution

Since the end of January 2024, cocoa bean prices have been on a sharp upward trend. As of today, Friday, April 19, 2024, ICCO (International Cocoa Organization) reports the price at USD 10.966,97/Ton, translating to USD 10,96/Kg. Several factors are driving this surge in cocoa bean prices. Natural factors like El Nino have caused drought in West Africa, leading to a significant decline in cocoa bean production in Ivory Coast and Ghana, two of the world’s largest producers. Additionally, the increasingly uncontrolled spread of cocoa plant diseases has further hampered production, resulting in a shortage of supply for the industry. Stay tuned to the Sagococoa blog for further updates on the cocoa market Sagococoa, a leading supplier of cocoa products, is dedicated to supporting our customers navigate this evolving market landscape. Our Products Sagococoa offers a wide range of cocoa products to meet the diverse needs of our customers: 1. Cocoa Powder 2. Cocoa Butter 3. Cocoa Mass Contact Us We are committed to providing our customers with exceptional service and support. Please contact us today to learn more about our products and how we can help you achieve your business goals. Website: www.sagococoa.com Email: [email protected] WhatsApp: +6285323440193 & +6282269905245 Join Us in Making a Difference #cocoaprices #industrychallenges #chocolateopportunities #premiumcocoa #sustainablecocoa #reliablesupply #cocoapowder #cocoabutter #cocoamass #empoweringfarmers #sustainableagriculture #longtermpartnership #sagococoa #cocoabusiness #cocoacompany #indonesiacocoa #chocolateindustry #foodindustry

Due to a variety of factors, people are worried about chocolate supplies. Yes, your candy bars are getting smaller, and the more unpronounceable ingredients added. Others have already written tons about it, but what I wanted to highlight was the move #Brazil 🇧🇷 has made to strengthen and increase its domestic production of cocoa in the face of the problems in West African cocoa markets. Brazil has been a powerhouse for #agriculture production in coffee, soy, and sugar for years but not cocoa since the 80s. Although cocoa does trace its origins as a crop to South America, currently 66%+ comes from Ivory Coast and Ghana. Interestingly, this comes as Brazil domestic processing of cocoa is increasing, and decentralized biofactories are coming on line. These biofactories are part of a multi-year effort to change the #bioeconomy for the Amazon. The micro factories are run by solar panels and cohorts of small community farmers that perform the processing, formulation, and packaging of the chocolate 🍫 😀. It is a major change in the normal #economics and #supplychain of chocolate but as cheap and plentiful cocoa from other sources continues to face difficulties it might prove to be perfect timing and a new option for our sweet tooth. -GSP- #4thindustrialrevolution

Attention chocolate enthusiasts! A cocoa crisis is brewing in West Africa, and it's set to impact your favourite treats. Ghana and Ivory Coast, the world's top cocoa growers, are facing catastrophic harvests due to illegal gold mining, climate change, mismanagement, and disease. This has led to record-high cocoa prices, with New York cocoa futures more than doubling this year alone. The situation is dire, with Ghana's cocoa marketing board estimating that 590,000 hectares of plantations are infected with swollen shoot, a virus that will ultimately kill the trees. This could spell the beginning of the end for West Africa's cocoa supremacy and open the door for other producers, particularly in Latin America. As a result, chocolate prices are expected to continue rising, with some experts predicting that the chocolate bars we're used to eating could become a luxury item. At CropLife Africa Middle East, we're closely monitoring this situation and working to support sustainable cocoa production in the region. We believe that advanced crop protection technologies, such as precision agriculture tools and innovative pest management solutions, can play a crucial role in improving cocoa yields and helping farmers combat the challenges they face. It's crucial that we address these challenges to ensure a stable supply of cocoa for the world's chocolate lovers and to support the livelihoods of millions of cocoa farmers in West Africa. By embracing cutting-edge crop protection technologies, we can help build a more resilient and sustainable cocoa industry. Read more about the cocoa crisis in this eye-opening article from Al Jazeera: https://lnkd.in/dCptAWgG #CropLifeAME #CocoaCrisis #WestAfrica #SustainableAgriculture #CropProtection #Chocolate

🍫 Navigating Cocoa #Price Fluctuations: Exploring the New #Chocoflation #Phenomenon 🍫 💭 What'a happening? Cocoa, a vital component of the #global #food #industry, is facing unprecedented #challenges due to its highly volatile #pricing. These fluctuations impact various facets of the food industry, from #supplychain dynamics to #consumer behavior and #sustainability initiatives. The recent #surge in cocoa prices is largely due to the #scarcity of cocoa from #WestAfrica, particularly #IvoryCoast and #Ghana, leading to market disruptions. Adverse #weatherconditions, such as #drought and #blackpod disease, further exacerbated the situation, severely affecting cocoa #production. Economists foresee continued #price hikes as #demand surpasses #supply, driving cocoa futures prices to unprecedented levels in #2024. 📊 #Market #Strategies and Innovation To cope with rising cocoa prices, companies are implementing #costsaving measures like reducing cocoa content or downsizing products. In the face of these challenges, fostering #collaboration and #innovation is essential to establish a resilient and #sustainable cocoa supply chain. By comprehending the interconnected nature of cocoa price fluctuations, stakeholders can pave the way for a brighter future in cocoa production and #consumption. Let's collaborate to navigate the complexities of the cocoa market and ensure a #sustainablefuture for this cherished #commodity. 🌱🌍 #CocoaIndustry #Chocoflation #SustainableSupplyChain #Cocoa #Chocolate #Cacao #BeanToBar #ChocolateLover #CocoaBean #CocoaLife #FairTradeChocolate #ArtisanChocolate #ChocolateArt #ChocolateAddict #BeanToCup #CacaoLove #DarkChocolate #ChocolateHeaven #PriceIncrease #Inflation #RisingPrices #CostOfLiving #EconomicImpact #HigherPrices #PriceHike #CostIncrease #PriceSurge #Budgeting #FinancialPressure #PriceRise #CostOfGoods #PriceJump #ExpensiveLiving #CocoaPriceIncrease #RisingCocoaPrices #CocoaCostIncrease #CocoaShortage #CocoaMarket #CocoaEconomics #CocoaSupplyChain #CocoaDemand #CocoaIndustry #CocoaMarketTrends #CocoaPriceSurge #CocoaFutures #CocoaTrade #CocoaEconomy

Expect #shrinkflation to take away from the size of your #Easter eggs 🥚 🍫. The price of #cocoa is near all-time highs ($5,500/ton) due to "bad weather conditions hammer crop yields in West Africa, home to three-quarters of the world’s production." Takeaways: (1) Ivorian cocoa output is said to have decreased by 20% and could go another 5% lower, according to the nation's Agriculture Minister. (2) Although bad weather has not impacted Peruvian cocoa, its price has increased from 7 to 21soles/kg. (3) Peruvian cocoa is the center of biodiversity for the bean and the world's organic and #fairtrade production. Smaller chocolate eggs for consumers and hard times for Ivorian and Ghana producers are occurring simultaneously with increased profit potential for organic and fair trade cocoa triples. This increase in profits could lead to a larger future market share for Peruvian farms if that short-term increase in funding is put into infrastructure and #farmtech. -GSP- #4thindustrialrevolution #farming

📰CHALLENGES FOR THE GLOBAL COFFEE INDUSTRY: Output Declines Sharply in Vietnam and Brazil 🔎In Vietnam, although the recent heavy rains have alleviated concerns about drought, they cannot save the upcoming Robusta coffee crop yield. It is anticipated that Robusta production in Vietnam will decrease by 10-20%. This situation not only affects Vietnam but also Brazil, the world's largest coffee exporter, which is also witnessing a sharp decline in exports. 🔎The Chairman of the Vietnam Coffee and Cocoa Association (Vicofa) has warned about the Robusta coffee production situation. The combination of drought, extreme heat, and pest attacks such as mealybugs and red mites are the main reasons for the significant decline in the upcoming crop yield. 📊According to Vicofa's estimates, Vietnam's Robusta coffee production for the 2024/25 season will only reach about 21.40 to 22.70 million bags. 🔎The current situation poses many challenges for the Vietnamese coffee industry and the global market. However, with support from the international community and the relentless efforts of coffee growers, there is still hope for a brighter future. Solutions such as financial support, technology transfer, and effective pest control measures are being implemented to help the coffee industry overcome this difficult period. 📊Moreover, Brazil's coffee exports have also declined sharply. According to the latest data, Brazil's coffee exports as of June 25 have decreased by more than 24% compared to the same period last year, reaching only 2.882 million bags. #commodity #robusta #arabica #coffeevietnam #coffeebrazil #CoffeeMarket

Chocolate Crisis: The Impact of Rising Cocoa Prices on the Industry The chocolate industry is facing big challenges due to soaring cocoa prices, driven by poor harvests in West Africa, the heart of global cocoa production. This issue is creating ripple effects across the entire supply chain, affecting manufacturers, consumers, and the future landscape of chocolate. Manufacturers are facing increased production costs, compelling them to either absorb these expenses, reduce product sizes (shrinkflation), or pass the costs onto consumers. This scenario puts significant pressure on profit margins and necessitates innovative approaches to maintain profitability without compromising quality. Consumers might experience noticeable price hikes or reduced portion sizes, which could alter purchasing habits and impact overall demand. As chocolate becomes a more expensive indulgence, consumers may turn to alternative sweets or premium products, reshaping market dynamics. Sustainability is at the forefront of the industry's response. Ensuring a stable and ethical cocoa supply chain involves investing in better farming practices, supporting cocoa farmers with fair wages, and promoting agroforestry. These steps are crucial for long-term viability, but require substantial commitment and collaboration among all stakeholders. What are your thoughts on potential chocolate price hikes? How can the industry ensure a sustainable cocoa supply chain? Let's discuss the future of this beloved treat. #chocolate #cocoa #supplychain #agriculture #sustainability #foodindustry