Cocoa prices have fallen by more than 30 percent this year, following sharp increases in international markets last year. The sharp movements seen in cocoa prices continue this year.
While cocoa prices broke records last year, the opposite trend appears to be prevailing this year.
While the price of cocoa per ton on the Intercontinental Exchange (ICE) in the United States tested the record high of $12,931 in 2024.
It ended the year at $11,675, up 178.2 percent, it has fallen by 33.3 percent compared to the end of 2024, falling below $8,000.
Cocoa prices broke records last year due to supply concerns, and cocoa prices have risen due to adverse weather conditions threatening crops in West Africa and low global stocks. Supply concerns throughout the year due to poor production in Côte d’Ivoire and Ghana played a significant role in driving cocoa prices to record highs.
While exporters in Côte d’Ivoire reportedly rejected cocoa beans due to poor quality, estimates indicate this situation could negatively impact global cocoa supplies. The country’s low cocoa harvest also led to higher prices.
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Cocoa prices hit consecutive records last year, as major cocoa factories in Côte d’Ivoire and Ghana decided to reduce or halt production because they were unable to cover seed costs.
While adverse weather conditions, such as prolonged drought and heavy rains, were the primary cause of cocoa supply problems, plant diseases also affected the crop. In particular, the CSSVD virus, which kills cocoa trees, caused production problems.
Restrictions on cocoa sales in Côte d’Ivoire raised concerns that supply would further shrink, and the Ivorian cocoa regulatory body, Le Conseil du Cafe-Cacao, informed companies and exporters without processing facilities in the country that they could not purchase cocoa beans.
A decline in cocoa deliveries from Ivory Coast following the onset of the Harmattan winds in West Africa threatened the cocoa crop, and the arrival of a small amount of product at ports for delivery also opened the door to higher prices.
Allegations that Ghanaian farmers were smuggling cocoa beans to neighboring countries and selling them for higher profits also fueled the sharp rise in prices.
As insufficient rainfall in West Africa led to concerns about cocoa production, small chocolate companies began paying more for access to cocoa and raw materials.
Naturally, this was one of the factors that led to the market’s renewed upward trend.
