- Dusty Sahara winds affect cocoa pod development in West Africa
- Easter chocolate prices surge amid cocoa supply concerns
- Decline in West African cocoa exports prompts global price hike
In recent months, intense dusty seasonal breezes from the Sahara have obstructed the sunlight required to develop cocoa bean pods in West Africa. Heavy precipitation from the prior year has also disseminated a decaying disease throughout cacao trees.
Undoubtedly, chocolate specialists have observed that eggs cost more this Easter.
As a result of the impact that shifting climate patterns have on cocoa supplies in West Africa, the price of chocolate may now rise.
In recent months, intense seasonal dusty breezes from the Sahara have obstructed the sunlight required for cocoa bean pods to develop in Ghana, the Ivory Coast, Nigeria, and Cameroon, producing approximately 75% of the world’s cocoa.
During the preceding growing season, a severe downpour inoculated the cacao trees, the primary producers of chocolate cocoa, with a decaying disease.
After three years of poor harvests, chocolate manufacturers have already increased consumer prices; according to Which?, some Easter eggs and rabbits are now priced at approximately 50% more, while others have shrunk.
In recent months, there has been a one-third decline in cocoa exports from the Ivory Coast, the world’s largest producer, which has caused the global price of cocoa to increase dramatically.
Already having doubled this year, the price of cocoa reached an all-time high of over $10,000 (£7,920) per metric tonne on Tuesday in New York.
However, cocoa bean producers have expressed apprehension that the increases are insufficient to offset their increased production expenses and decreased yields, which numerous individuals attribute to climate change.
Cacao trees are especially susceptible to weather fluctuations and can only be found near the equator.
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Cocoa is harvested by farmers from the trees and subsequently sold to processing facilities or local dealers. They transform the legumes into chocolate-making butter, powder and spirits and distribute the finished goods to international chocolate corporations.
Global cocoa is transacted on a regulated market, where prices are established one year in advance.
System failure during periods of scarcity
Nevertheless, during periods of scarcity, the system malfunctions and local dealers compel producers to pay an increased price to obtain beans.
Due to the haste with which international merchants acquire those beans at any cost to fulfil their commitments to multinational chocolate corporations, regional processors frequently need more beans.
Plants compelled to cease or reduce processing.
Reuters reported earlier this month that several major African cocoa plants in Ivory Coast and Ghana have been forced to cease or reduce production because they cannot purchase legumes at the increased prices and are not receiving the pre-ordered cocoa.
The International Cocoa Organisation (ICCO) estimates that this season’s deficit will increase from 74,000 to 374,000 tonnes due to the mismatch between supply and demand.
As a result, chocolate companies and processors will be forced to rely solely on cocoa stocks to meet their requirements; the ICCO predicts that by the end of the season, cocoa stocks will have fallen to their lowest level in 45 years.
