By CultureBanx Team
- Cocoa recently hit prices of $10,000 per metric ton for the first time ever
- Ivory Coast and Ghana hold the title of the world’s top cocoa producer contributing about 45% to the global supply
Cocoa serves as a crucial pillar for the economies of Ivory Coast and Ghana, recently hitting prices of $10,000 per metric ton for the first time ever. The countries cocoa account for around 15% and 2-3% of their GDPs respectively, Fluctuating international cocoa prices pose a significant opportunity, impacting the livelihoods of countless individuals dependent on cocoa farming.
Why This Matters: Ivory Coast and Ghana stand as the backbone of the global cocoa industry, with the former holding the title of the world’s top cocoa producer, contributing about 45% to the global supply, yet receiving a fraction of the chocolate industry’s vast annual worth. The Ivory Coast is ambitiously aiming to ramp up its production to 2 million tons by 2025, despite a projected 28.5% drop in the early 2023/2024 season due to adverse weather. Similarly, Ghana’s COCOBOD had to revise its production forecast down to 650,000-700,000 metric tons for 2023-24, marking a 14-year low.
It’s important to note he cocoa sectors in both countries face numerous challenges, including aging trees, diseases like the swollen shoot virus, and climate impacts leading to extended wet seasons and flooding. These factors have contributed to a decline in cocoa output, with Ivory Coast and Ghana experiencing a decrease in port arrivals by 28% and 35%, respectively. Moreover, the rampant smuggling of beans to neighboring countries exacerbates the supply issues.
Situational Awareness: Despite high global cocoa prices, local farmers see little benefit due to government-controlled market prices. Unfortunately, most cocoa farming families live in poverty, relying on cocoa for about two-thirds of their income On the communal farms of Ivory Coast, the stark reality unfolds with millions of cocoa farmers making do on an average of just $0.78 a day.
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