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Tuesday July 23 2024

Sharp rise in cocoa prices continues

14 June 2024 21:19 (UTC+04:00)
Sharp rise in cocoa prices continues

By Alimat Aliyeva

Due to supply and production problems in Ghana, the price of cocoa has again reached $10,000 per ton, Azernews reports.

That factories in Ghana and Ivory Coast have stopped production, citing the high cost of seeds, which is why prices have been rising since April. Then the price of one ton of cocoa on the intercontinental exchange reached a record high of $ 11,722.

The main causes of supply problems are adverse weather conditions (for example, El Nino) and plant diseases. After a jump in April, concerns about supplies eased by the first week of May. Thus, prices fell by 24 percent and amounted to less than 7 thousand dollars per ton. It was the fastest decline of all time.

Cocoa prices are rising amid ongoing concerns about weather conditions and reached $9980 on June 13.
Analysts said the price increase was due to supply problems in Ghana, as the country plans to postpone shipments of up to 350,000 tons of cocoa beans until next season due to poor harvests.

In addition, the news that Ghanaian farmers are smuggling cocoa beans to neighboring countries to make higher profits contributed to the price increase.

It is worth noting that since the beginning of 2024, the price of one ton of cocoa has increased by about 135 percent.

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