Tierra Farms - Rising Cocoa Prices

From Tierra Farms:

Please be aware that over the past two years, the price of cocoa has been rising due to several factors:

  • Supply shortage. The International Cocoa Organization predicts that the global cocoa supply will decrease by nearly 11% in the 2023/2024 season. 
  • Reduced bean production. Major cocoa producing nations in West and Central Africa have seen a significant drop in bean production. 
  • Underinvestment. Cocoa farms have been chronically underinvested in. South Africa has taken acreage out of production in lieu of diamond mining.
  • On the Ivory Coast, Indonesia and Ghana have lost 30-40% of their crop due to pests, disease, and soil degradation.
  • Inflation pressure 
  • Weather.  Drought negatively impacting West Africa in particular.
  • Labor shortages in the trade and logistics segment are expected to put upward pressure on global freight cost.
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