Mighty Earth’s Post

"Futures in London rose as much as 9.6 per cent to an all-time high of £9,477 a tonne, extending the rally since the start of the year as poor harvests in the world’s main growing regions in west Africa have worsened the shortfall. The number of “grindings” — beans processed by the industry to eventually be turned into chocolate — fell by 2.5 per cent in the first three months of the year compared with the same period last year, according to the European Cocoa Association." Higher prices spell good news for producers who are unaffected by drought like conditions, but bad news for chocolate manufacturers and consumers globally, as further declines can mean an increase in the price that you pay for your favorite chocolate bar. Would you pay more for your favorite chocolates? Or would you give it up? Tell us in the comments below. #cantlivewithoutchocolate #chocoholicsoftheworldunite

Count the calories and (the pennies) 🍫 Cocoa prices have soared to record highs in recent weeks. After starting the year at about US$4,200/tonne, the benchmark daily price of the International Cocoa Organisation (ICCO) has rocketed. On February 26th it surpassed US$6,000/tonne (from year-earlier levels of about US$2,600/tonne). The jump in prices is owing to the effects of the El Niño weather phenomenon, which is severely hampering output in most major producing countries and will keep prices elevated for most of the year. Price increases are being driven by sharp falls in production in most of the world's largest cocoa-growing countries. El Niño has caused extremely wet conditions in West Africa, causing fungal disease in cocoa crops, which is hampering the production and harvesting of cocoa beans. This impact is particularly pronounced in Côte d'Ivoire and Ghana, which together account for 60% of global cocoa output. If you have a penchant for Confectionery, Hot drinks or certain Cosmetics be prepared for a sharp increase in prices. #elnino #cocoa #commodityprices

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

Urgent Cocoa Market Challenges: Q4 2024 Outlook The cocoa industry is seeing slight improvements in production for the 2024-25 season, but many hurdles remain. Ivory Coast’s 20% increase in farmgate prices aims to reduce smuggling, but local farmers in both Ghana and Ivory Coast still receive less than global rates. This pay gap discourages investment in farming infrastructure and even fuels illegal trade to countries offering better prices. Despite a forecasted surplus, it’s not enough to bring down prices significantly, as stockpiles are still at record lows. This is putting pressure on chocolate manufacturers to either raise prices or reduce product sizes to manage rising costs, a practice known as “shrinkflation.” Premium chocolate brands, in particular, are walking a fine line between keeping costs in check and maintaining product quality, while more budget-conscious consumers are looking for cheaper alternatives. Significant Economic Impact on Chocolate Prices Despite all these challenges, the cocoa market remains resilient. Brands like Lindt and Hershey have responded to the raw material shortage by raising prices anywhere from 3% to 10%. These increases aren’t just due to cocoa prices—they’re also a result of broader economic issues like inflation and rising production costs. Consumers are feeling the pinch as they end up paying more for smaller quantities of chocolate. As we move into Q4 2024, it’s clear that the industry needs more than just short-term fixes. Investment in sustainable farming practices is critical if we want to ensure the long-term stability of cocoa supplies. Without this, the market may continue to face price volatility and production shortfalls. References: https://lnkd.in/dQbiVNSG https://lnkd.in/df3kiX9h #CocoaMarket , #ChocolateIndustry , #CommodityPrices , #SustainableFarming , #GlobalTrade

This week, cocoa prices rose to all-time highs on commodity exchanges in London and New York, reaching more than $10,000 a tonne for the first time, after the third consecutive poor harvest in west Africa. Ghana and Ivory Coast, which together produce more than half of the global cacao crop, have been hit by extreme weather supercharged by the #climatecrisis and the #ElNiño weather phenomenon. https://lnkd.in/d3PBaudt

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

https://lnkd.in/gM_iVz_W LONDON/ACCRA, March 13 (Reuters) - Major African cocoa plants in Ivory Coast and Ghana have stopped or cut processing because they cannot afford to buy beans, four trading sources said, meaning chocolate prices around the world are likely to soar.Chocolate-makers have already increased prices to consumers, after three years of poor cocoa harvests, with a fourth expected, in the two countries that produce nearly 60% of the world's cocoa.

💰Who benefits from the crazy surge in cocoa prices? Part I The surge in cocoa prices on the financial markets is sending shivers through the entire sector, but is benefiting cocoa growers, bean processors, speculators and chocolate makers to varying degrees. Prices exploded to more $10,000 a tonne in New York in March after a poor harvest in West Africa, due to a combination of unfavourable weather conditions and devastating diseases in ageing plantations. They have since fallen back but remain three times higher than last year. In Ivory Coast and Ghana, the world's largest #cocoa producers, prices are set by the authorities in October "on the basis of prices from previous months", but the harvests "are already largely pre-sold", explains Tancrède Voituriez, from the Centre for International Cooperation in Agricultural Research for Development (CIRAD). This reduces the impact of price fluctuations -both upwards and downwards. Small producers, who usually barely earn enough to live on, therefore did not immediately benefit from the surge. The authorities nevertheless raised the price of the intermediate harvest by 50% in April, to between 2,300 and 2,500 dollars per tonne paid to the producer. In other countries where the system is liberalized, such as Cameroon, Nigeria, Ecuador or Brazil, producers have benefited more, selling their beans to buyers willing to approach financial market prices. But beware of the backlash. "The surge in prices has made this production more attractive," David Gonzales, coordinator of the Peruvian Chamber of Coffee and Cocoa, told AFP. At the risk of an excess supply within 3 to 5 years, the time for new trees to grow, and a sudden drop in prices. The big processors that grind the beans into butter, liquor or powder (Swiss Barry Callebaut, American Cargill, Singaporean Olam) have generally negotiated a large part of their supply in advance. But some contracts have been honored, forcing them to find beans urgently at a high price, and sometimes to slow down their factories. #BarryCallebaut said in early April that it had drawn more than usual on its #cash reserves to finance its purchases but had enough #cocoa available to meet demand. Other smaller intermediaries may struggle to advance the funds needed to adapt to the new environment. "Smugglers can probably rub their hands" by buying slightly above fixed prices in Ivory Coast and #Ghana and reselling at market prices from Togo, Guinea, Liberia or Sierra Leone, notes Steve Wateridge of Tropical Research Services. Trading houses and #chocolate makers, for their part, usually protect themselves from price reversals by betting on the opposite trend on the #financial markets, in this case by betting on a fall. Some have had to, with the surge, deposit additional #funds with their bankers to cover their potential losses. https://lnkd.in/eZYQ85ag #TradeInAfrica #Markets #GDP #TradeUnderAfCFTA

Part 3 of 3, about current skyrocketing commodity prices for cacao Farmer equity should be kept in focus no matter what part of this equation we're looking at. Below is an older article that highlights some of the struggle for farmer wages in Côte d'Ivoire. Farmer equity is something that small chocolate-makers like myself and our value chain partners are working to address - the circumstances vary greatly between different countries around the world, but ultimately it is a worldwide issue. I'll note that colonialism and its aftermath is the common factor! https://lnkd.in/e_9saHPr Sadly, even with (or perhaps in a roundabout way as a result of?) Côte d'Ivoire's Livable Income Differential mentioned in the article above, farmers in that country are not benefiting from today's outrageously high cacao prices. In some other countries farmers are definitely benefiting, and that's a good thing. If you want to dig a little deeper, my broker Uncommon Cacao has shared a very informative blog post that also gets at this situation in more depth, from the perspective of a company working to shift our market towards more equity and sustainability for farmers: https://lnkd.in/d33FQqGK The good news for a small maker like Enna Chocolate is that our purchase of fine flavor cacao beans (while expensive) is just one of many factors in our costs. Our labor, overhead, and packaging are all important factors in our pricing. So even though my cacao costs are likely to increase, this will hopefully only have a small impact on our overall costs. attached photo: Enna and friends touring a farm in the Toledo District of Belize with Maya Mountain Cacao, photo copyright Enna Grazier