Malcolm Libera
Chocolate lovers in South Africa are in for some bitter news, as the cost of their favourite treat is set to climb due to record-high prices for cocoa, chocolate’s main ingredient.
Cocoa futures surged to $11,938 per metric ton in the third week of December, marking an all-time high.
Although the price slightly eased to $11,864, it remains up by an astonishing 180% since the beginning of the year.
This dramatic surge is tied to supply shortages and unfavourable weather in West Africa, the region responsible for approximately 75% of global cocoa production.
The International Cocoa Organisation (ICCO) reported the largest cocoa deficit in over six decades for the 2023-2024 marketing year, citing crop failures in Ivory Coast and Ghana, the world’s leading cocoa producers.
Dutch bank ING noted that while prospects for the 2024/2025 marketing year may improve, persistent weather risks could undermine production levels.
ING’s commodities strategist, Warren
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