• Sat. May 25th, 2024

Record-High Prices for Cocoa: A Profitable Investment Opportunity Amid Uncertain Harvests

BySamantha Nguyen

Mar 27, 2024
Cocoa Prices Surging Faster Than Bitcoin, Stabilization Not Expected Soon

The cost of cocoa has been steadily rising for months, with one ton now costing over $10,000. This increase is due to disappointing harvests and there is no sign of stabilization on the horizon. Despite these challenges, investing in cocoa could prove to be profitable as the price has reached unprecedented heights in recent months.

On the New York futures market, $10,047 was paid for a ton of cocoa beans on Tuesday. This is an 186 percent increase compared to a month ago when cocoa cost almost $6,000 per ton and a year ago when it was just under $3,000. The high price of cocoa can be attributed to poor harvests caused by older and diseased trees, as well as the weather phenomenon El Niño which led to drought in Africa. More than 60 percent of global cocoa production takes place in Ghana and the Ivory Coast where extreme weather conditions have halved harvests. Efforts are underway to increase cocoa production in Brazil and Ecuador but it will take years for these trees to bear fruit.

The chocolate industry is worth 6.1 billion euros with exports accounting for 3.4 billion euros. Belgium is the world’s second largest exporter of chocolate representing 11 percent of the world market. The port of Antwerp is also the largest storage location for cocoa beans in the world. As a result of the high prices of cocoa, Belgian producers like Libeert are facing challenges in keeping up with demand while maintaining profitability

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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