The price of cocoa, the main ingredient in chocolate, has surpassed $7,000, setting record highs day after day. The upward trend is expected to continue throughout the year, with some forecasts suggesting it could reach up to $10,000.
Chocolate (Photo by Asia Economy DB)
On the 12th (local time), cocoa futures traded on the New York Mercantile Exchange rose 4.7% from the previous trading day to reach a record high of $7,049 per ton (t). Cocoa futures prices have increased by about 68% so far this year. This is due to continued supply reductions caused by droughts last year in West African countries such as Ghana and C?te d'Ivoire, the largest cocoa producers, followed by heavy rains earlier this year that damaged the crop yield.
Additional production is also considered difficult. This is because the governments in the West African region, which have the authority to set cocoa prices, base prices on the previous year's sales volume by farmers. This is why there are concerns that farmers who have not benefited from the recent cocoa price rally may find it difficult to invest in harvesting.
Bloomberg cited an analysis by a Citi Research analyst, stating, "If the supply shortage in the West African region continues without a significant decrease in demand, cocoa futures prices could reach up to $10,000 per ton." There are also forecasts that price declines may not appear until the second half of 2025.
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