Podcast Episode Summary: Global Cocoa Market Update for June 30, 2024
- Ghana: Cocoa farmers in Ghana are struggling with economic instability, rising production costs, and the devaluation of the cedi, which has dropped over 20% against the dollar this year. Despite a government effort to increase farm-gate prices by 58.26%, many farmers are smuggling cocoa to Ivory Coast to benefit from better prices. Cocoa swollen shoot virus and illegal mining have further impacted production, leading to a $500 million loss in cocoa revenue in early 2024. Ghana’s cocoa board, Cocobod, forecasts recovery to 800,000 tonnes by year-end.
- Ivory Coast: The world’s top cocoa producer is also facing supply challenges. A temporary export suspension by the Conseil Du Cafe Cacao, due to poor weather and high production costs, caused cocoa prices to fluctuate, hitting $12,000 per tonne before stabilizing around $10,000. Ivory Coast is prioritizing local grinders by halting exports to secure supply for domestic processors, impacting large companies like Cargill and Barry Callebaut. Additionally, the government suspended 40 cooperatives for hoarding stocks and plans to eliminate intermediary buyers by October 2024, aiming for a traceability system that directly connects farmers to exporters, reducing delays and price manipulation.
This episode underscores the cocoa industry's struggles with economic pressures, climate impacts, and regulatory changes in both Ghana and Ivory Coast. For a detailed analysis, visit CropGPT for extensive reports on the cocoa market.
