Cocoa beans rot in their own shells before they are even picked. The climate crisis hitting Ivory Coast and Ghana, two of the world’s largest producers, is causing farmers to ” black pod disease‘ and is reducing its production in a very alarming way. Unlike what happened in the Mediterranean, where poor harvests were caused by drought, in this corner of Africa excessive rainfall was caused by The climatic phenomenon of El Niño, the person who pays the price. Product shortages have driven up wholesale prices highest level since 1977.
Average value of cocoa in the international market It’s already 65% more expensive than last year. If we add to this the high prices of sugar affected by the El Niño climate phenomenon, it is not unreasonable to predict that chocolate will go through the roof this Christmas. In fact, the United States Department of Agriculture predicts: Dessert and cookie prices will increase by 8.9 percent This year and next year it exceeded total food inflation by 5.6%.
Total rainfall in West Africa since May 1, when the rainy season began more than double the average of the last 30 yearsAccording to the news of Bloomberg news agency. Harvest expected in Ghana 13 year lowIvory Coast is the lowest among seven countries, according to estimates by traders and exporters. The two countries produce about 60% of the world’s beans, according to the International Cocoa Organization.
The most active cocoa futures are trading at a 46-year high on the New York market. $4,200 per ton. For this price you can buy about 50 barrels of oil. And experts point out that the rise hasn’t reached the top yet.
abandoned farms
Another added problem was that farmers could not benefit from price increases, causing many people to abandon their farms. The cocoa markets in Ivory Coast and Ghana are definitely controlled by governmentsand regulators typically sell grain to foreign buyers at least 12 months in advance. That means the money paid to farmers for this season’s crop was locked in about a year ago, when futures contracts were around $2,500 a ton.
international sugar prices They recorded an average of 161.4 points last November; 2.2 points (1.4%) more than October After the respite in October, it was 47 points (41.1%) above the level recorded in the same month last year. According to FAO, the UN agency responsible for agriculture and food, the price increase in November was ” Worsening production expectations “Delays in India and Thailand, two of the main exporters, due to severe drought weather conditions associated with the El Niño phenomenon.” Similarly, the FAO notes “delays in developments” in its monthly price report. incoming shipments Brazil contributed to the overall increase in world sugar prices, along with the strengthening of the Brazilian currency against the US dollar.” The agency said the reason why prices did not increase further was due to the good pace of production and the decline in international crude oil prices.