Delfi (formerly: Petra Foods)

[gzbkel]

Economist's article on the current cocoa shortage

https://www.economist.com/graphic-detail...-expensive

[weijian]

Hi gzbkel,

Thanks for the article but unfortunately, that is behind a paywall. I have asked Co-pilot (Microsoft's generative AI) and below is the response given:

Me: why are cocoa prices rising?

Co-pilot:
Cocoa prices have been surging recently due to a combination of factors. Let’s delve into the reasons behind this upward trend:

1. Adverse Weather Conditions:
The La Niña weather phenomenon has led to excessive rainfall in several cocoa-producing areas in West Africa. This wet and rainy weather has damaged cocoa plantations, particularly in Côte d’Ivoire (Ivory Coast), which is a major cocoa producer.
The uncertainty about the volume of available cocoa has arisen due to the excessive rainfall, affecting the country’s production. In the 2022/23 season, Côte d’Ivoire produced 2.14 million tons of cocoa, down 2.7% from the previous cycle.
Additionally, there are concerns about dry weather in the region as El Niño challenges crop prospects for the 2023/24 season.

2. Harmattan:
The Harmattan, a dry and dusty wind blowing from the Sahara towards the West African coast, has intensified. It has dried out young cocoa fruits in older plantations in Côte d’Ivoire.
As a result, there is an increased risk of lower production in the western part of the country compared to the previous year.

3. Pests and Diseases:
Heavy rains in West Africa have caused diseases in a significant number of cocoa seeds.
Producers are currently battling the “swollen porpoise virus”, which can lead to tree deaths within a few years.

4. Supply Difficulties:
Lower cocoa deliveries to ports in Ivory Coast have contributed to the rise in cocoa prices. Since the start of the 2023/24 cocoa harvest, deliveries have fallen.
The global scenario is characterized by low stocks, exacerbating supply constraints.

5. Growing Demand:
Despite supply challenges, cocoa demand continues to increase. This rising demand further impacts price fluctuations.

[gzbkel]

Sorry about that. Here is the archived version of that link: https://archive.ph/nTUkk