Cocoa – The New Gold?

Historical Context and Current Crisis

The world’s dependency on cocoa from Ivory Coast and Ghana, which jointly produce over 60% of global supplies, has always posed a risk. Late in 2023, these major cocoa-producing nations began experiencing severe agricultural setbacks due to excessive rainfall that led to widespread rot and fungal infections in cocoa crops. As we entered 2024, these initial problems have escalated into a full-blown crisis with cocoa prices reaching a historic high of $10,990 per ton as of April 30, 2024—a staggering 367% increase from the previous year.

Climate Change: A Persistent Threat

Climate change is a relentless force impacting cocoa production, particularly in the equatorial belt where all cocoa trees grow. The regions around the equator are experiencing increasing temperatures and reduced water availability, which are detrimental to the cocoa trees that thrive under specific climatic conditions. Our previous discussions in “The Cocoa Tree – A Tropical Diva” delve into the delicate nature of these plants and their specific environmental needs.

The Role of El Niño

The El Niño phenomenon, characterized by significant changes in the Pacific Ocean’s temperature, exacerbates weather irregularities globally. Its effects have been particularly severe in Latin America, a key region for cocoa cultivation. The resulting weather extremes, from droughts to storms, have devastated many cocoa plantations, further straining global cocoa supplies.

Impact on Chocolate Pricing

The ripple effects of the cocoa price surge are inevitably felt in the consumer market. Chocolate, universally beloved, is becoming a luxury as prices climb. VIVANI, like many small producers, finds itself in a precarious position, forced to increase prices despite wishing to maintain accessibility for chocolate lovers. The Managing Director of ViVani, Gerrit Wiezoreck, has spoken candidly about these challenges, noting that price increases are not just likely but necessary.

A Global Shift in Cocoa Production

The long-term outlook suggests a shift in cocoa production from West Africa to regions like Ecuador, expected to become the second-largest cocoa producer by 2027 due to its more sustainable cultivation practices and lesser impact from illegal activities. This geographical shift in production bases could reshape the global cocoa supply landscape significantly.

Looking Forward

The 2024 cocoa crisis is a complex issue intertwined with environmental, economic, and social factors. It highlights the need for sustainable farming practices, ethical sourcing, and greater resilience in agricultural planning. As ViVani continues to monitor this situation, it is clear that both immediate and long-term solutions are needed to stabilize the market and ensure the sustainability of chocolate production worldwide.

Stay tuned to our beauty news section in ViVani for further updates and in-depth news!