• Fri. Jun 14th, 2024

Cocoa Prices Soar to Unprecedented Heights: Investors and Chocolate Producers Alike Struggle to Keep Up

BySamantha Jones

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

The cost of cocoa has skyrocketed in recent months, with one ton now fetching more than $10,000. This increase is due to a combination of factors including disappointing harvests and extreme weather conditions that have reduced global production. Despite these challenges, investing in cocoa could still be profitable as the price has reached unprecedented heights in recent months.

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

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

Belgian chocolate producers are facing a challenge 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% 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, consumers can expect an increase in chocolate costs although not as quickly as the price of cocoa itself. Large companies like Hershey and Mondelez have already indicated that they will pass on these record prices to consumers while Belgian producers like Libeert can protect themselves by buying cocoa at times when prices are low.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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