World prices for cocoa beans exceeded the mark 10 thousands of dollars per ton, setting another record. The market was shaken by a poor harvest from key West African producers, which led not only to an increase in the price, but also to a noticeable shortage of cocoa beans.Focus researched, what is happening and how the situation on the cocoa bean market will affect the cost of Ukrainian confectionery.
Reasons for shortage: production cuts and weather conditions
In the last week of March, the most active cocoa futures jumped to 4,5% before $10080 per ton in New York. And although later they decreased to $9 622, fordata Bloomberg, cocoa futures in London and New York have more than doubled this year.
Experts explain, that this followed news of funding problems in Ghana, which is the second largest producer of cocoa beans in the world.The thing is, that the Ghana Cocoa Board relies on foreign funding, to pay farmers, who grow cocoa. But the country could soon lose access to a key financial mechanism due to a crop crisis.
President of the Association “Ukrkondprom” Oleksandr Baldyniuk draws attention, that price increases are unlikely to be temporary, because this is a big systemic problem. “For a long time, low prices were kept for cocoa beans, therefore, the field did not attract the attention of investors, - noted the expert in the comment Focus. —Cultivation of cocoa beans, which is localized in three African countries (Cote dʼIvoire, Ghana and Nigeria), has been declining over the years: the trees grew old, the area was not increased, harvests were decreasing. Lately, weather conditions have been imposed on it, which were unfavorable for cultivation and harvesting, and the world faced a shortage of cocoa beans. Prices do not stop yet: if over the past year they have increased by 50%, then for the first three months 2024 year - almost twice. For comparison: in September 2022, cocoa beans could be bought for 2,5 th. dollars per ton, in December last year — by 4 th. dollars per ton, and now the cost has exceeded 9 th. dollars”.
The full text of the article can be found at the link: https://focus.ua/uk/economics/637543-bude-nesolodko-chomu-v-ukrajini-u-2024-roci-zletyat-cini-na-shokolad-i-cukerki
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