Cocoa bean prices have reached record levels

Against the backdrop of a possible supply shortage, the price of cocoa beans for the first time in history exceeded the level of $10,000/t, breaking the previous record on February 27, – reports Bloomberg.

On March 26, cocoa bean futures rose 4.5% to an all-time high of $10,080/t.

Low harvests in major West African countries are exacerbating supply shortages, which have been observed in the market for the third year in a row. Low incomes for cocoa farmers could lead to reduced supply. In addition, financial market pressure is mounting as traders sell futures to hedge against physical inventories.

After the entry into force of new EU regulations aimed at limiting the sale of products obtained by cutting down forests, the situation may worsen, and the supply of cocoa for chocolate producers in the EU may decrease.

Cocoa futures in New York rose for a fourth straight day on news of financing problems in Ghana, the world’s second-largest producer.

The poor harvest has left the country without sufficient financial income, so the industry regulator, the Cocoa Board, known as Cocobod, is relying on foreign funding to pay farmers.

Against the background of low harvests caused by unfavorable weather in West Africa (the world’s main producer of cocoa) and plant diseases, prices rose by 60% in March alone, and more than doubled since the beginning of the year, which greatly complicates the situation in the industry.

The increase in the price of cocoa will lead to an increase in chocolate prices throughout the year. Easter eggs are already on the rise after last year’s price spike, and some manufacturers are reducing product sizes or adding other ingredients to soften the price blow.

Tags: prices