The main African plants engaged in the production of cocoa in COCO-D'IVUAR and Ghani cease or significantly reduce their activities due to the inability to buy cocoa beans. This can lead to a sharp increase in chocolate prices worldwide.
After a prolonged deterioration of the cocoa yield for three years in these two countries, which produce about 60% of the world's cocoa production, chocolate manufacturers have already increased prices for consumers. It is expected that this year's harvest will also be small.
Over the last year, cocoa prices have increased more than twice, reaching historical maxima.
Steve Wateridge, a World Cocoa expert from Tropical Research Services, said: "We need a massive decline in demand to balance the losses in supply."
Chocolate manufacturers depend on processors to produce raw cocoa from which they make oil and liqueur for chocolate production. However, processors also face the problem of higher prices for beans.
Transcao, a state-owned cocoa bean manufacturer in Kot-d'Ivari, stopped purchasing beans because of their high price. Although the plant is still processing stocks, it is almost idle.
It is possible that large state plants will soon be closed at COP-D'IVAR, which produces almost half of the world production of cocoa. Even the Cargill International Trader could not receive beans for his main processing plant in COP-D'Ivar, which led to a temporary stop for the week of last month.
In Ghana, which is the world's second cocoa manufacturer, most of the eight plants, including the State Coco Processing Company, have stopped several times several weeks since the season in October 2023.
The Cocoa International Organization for Cocoa stipulates that this season, the world production of cocoa will be reduced by almost 11%.
