Climatic conditions are contributing to a poor cocoa crop which has shot up cocoa prices to previously unseen levels.
Cocoa prices have reached over $7,300 per metric tonne after having ranged from about $2,000/MT to $3,000/MT over the last 20 years.
The El Nino Southern Oscillation (ENSO) is a natural climate phenomenon that can lead to warmer temperatures in tropic zones.Â
This phenomenon has led to record temperatures that have adversely affected cocoa output in both Cote d’Ivoire and Ghana, the two leading producers of the crop.
According to Euronews, cocoa shipments were down 39% in Cote d’Ivoire from October 2023 to February 2024. Shipments from Ghana were also down 35% from September 2023 to January 2024.
Chocolate products are expected to see a significant rise in price as a result of the cocoa price spike.
It, however, remains to be seen if the huge spike in cocoa prices can incentivise the Ghanaian state cocoa company, COCOBOD, to improve the level of the crop’s production in the country.