According to industry analysis, the price of cocoa has reached its highest level in 46 years, potentially leading to an increase in the cost of chocolate
The surge in cocoa prices is attributed to adverse weather conditions in West Africa, which pose a threat to the production prospects of the region's main cocoa suppliers, who provide the primary raw material for chocolate manufacturing. On the Intercontinental Exchange in London, the benchmark September contract for cocoa rose over 2% to reach 2,590 pounds per metric ton, marking the highest price since 1977 at 2,594 pounds.
The continuous strength in cocoa prices is fuelled by concerns related to El Niño and recent heavy rainfall in West Africa, which caused crop damage and delays in the mid-crop harvest and truck shipments in Côte d'Ivoire. Despite the challenges, Côte d'Ivoire farmers managed to increase their cocoa shipments to ports by 16% year on year, with 29,910 tons transported from 19-25 June.
However, the cumulative cocoa shipments to Côte d'Ivoire ports for the 2022/23 marketing year (from 1 October to 18 June) decreased by 2.2% year on year, as reported by the Government. It is also worth noting that the Côte d'Ivoire holds the position of the world's largest cocoa producer.