Cocoa: Prices Rise After Poor Harvests in Côte d’Ivoire and Ghana

Cocoa harvests in Côte d’Ivoire and Ghana, the world’s two largest producers, have been called “catastrophic” by analysts. This has led to a sharp rise in cocoa prices.

New records were reported in early February in the New York and London markets, with the price per ton in the U.S. reaching $5,288, the highest level in 20 years. The price of cocoa has more than doubled since the beginning of 2023, and the peaks of 2011, when prices were affected by the political crisis in Côte d’Ivoire, have been overcome. The historic high was in 1977 at $5,379 per ton.

The reason for this could have been too heavy rains that jeopardized the crops. Excessive moisture favored parasites and pathogens such as “black pod.” This fungal disease affects cocoa plantations and leads to fruit rotting, which is fraught with the loss of more than 50% of the crop and the death of the plant.

“Since these two main producing countries (Côte d’Ivoire and Ghana – ed.) supply about two-thirds of the world’s cocoa beans, any changes in harvests tend to have a significant impact on the cocoa market,” the International Cocoa Organization (ICCO) said in a report. “Climate challenges have implications not only for producers, but also for consumers. In addition to high cocoa prices, confectionery manufacturers face other expenditures, such as the rising cost of sugar.”

Sugar prices have also gone up, mainly due to climatic events that led to a downturn in global production.