https://en.sputniknews.africa/20240314/african-cocoa-plants-reportedly-exhaust-their-bean-supply-as-worldwide-chocolate-crisis-1065541193.html
African Cocoa Plants Reportedly Exhaust Their Bean Supply as Worldwide Chocolate Crisis Intensifying
African Cocoa Plants Reportedly Exhaust Their Bean Supply as Worldwide Chocolate Crisis Intensifying
Sputnik Africa
Africa produces about 70% of the world's cocoa, with Cote d'Ivoire and Ghana dominating the market. Due to bad weather and crop diseases, the cocoa harvest has... 14.03.2024, Sputnik Africa
2024-03-14T15:11+0100
2024-03-14T15:11+0100
2024-03-14T15:40+0100
ghana
sub-saharan africa
cote d'ivoire (ivory coast)
cocoa
chocolate
economy
west africa
climate
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Major cocoa facilities in Ghana and Cote d'Ivoire have stopped or reduced production because they cannot afford to purchase beans, the Western media reported, citing four trade sources. As a result, global chocolate prices are expected to rise significantly. In addition, chocolate manufacturers have already raised costs for customers due to three consecutive years of insufficient cocoa harvests. A fourth year of poor harvests is expected in the two countries that produce about 60% of the world's cocoa, the media reported.In the past year, cocoa prices have increased by over twofold, reaching a series of all-time highs.It's important to note that chocolate manufacturers are unable to produce chocolate directly from raw cocoa. Instead, they rely on processors to transform cocoa beans into cocoa butter and cocoa liquor, which can then be used to make chocolate. However, the processors reportedly claim that they cannot afford to buy the beans.Transcao, a state-owned bean processor in Cote d'Ivoire, has announced that it had stopped purchasing beans due to the high price, adding that it is so far continuing its operations by processing beans from its existing stock, according to the report.Furthermore, top cocoa producer Cote d'Ivoire, which supplies nearly half of the world's cocoa, may shortly shut down more major state-run facilities, the media said.In Ghana, the world's second-largest producer of cocoa, most of the country's eight cocoa processing plants have been forced to suspend work multiple times for several weeks at a time since the start of the cocoa season in October. This includes the state-owned Cocoa Processing Company, which is reportedly currently running at only 20% of its capacity due to a scarcity of cocoa beans.However, the chocolate industry suffers not only from unpredictable weather conditions that result in poor harvests and then high prices for cocoa beans, but also from the failure of major brands to pay farmers enough for their hard work.For example, only about 20% of brands (or 17 out of 84) are recognized as using chocolate from suppliers who guarantee farmers are paid enough, the media reported last December, citing an analysis by the UK-based research organization Ethical Consumer.Cocoa production is a source of livelihood for millions of people in West Africa. Farmers, though, receive a mere 6-11% of the $100 billion chocolate industry's revenues, according to the research.
https://en.sputniknews.africa/20231203/only-20-of-chocolate-brands-pay-enough-to-cocoa-farmers-report-reveals-1063928934.html
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ghana, cote d'ivoire (ivory coast), cocoa, chocolate, economy, west africa, climate
ghana, cote d'ivoire (ivory coast), cocoa, chocolate, economy, west africa, climate
African Cocoa Plants Reportedly Exhaust Their Bean Supply as Worldwide Chocolate Crisis Intensifying
15:11 14.03.2024 (Updated: 15:40 14.03.2024) Africa produces about 70% of the world's cocoa, with Cote d'Ivoire and Ghana dominating the market. Due to bad weather and crop diseases, the cocoa harvest has been poor for the past three years, leading to a significant increase in chocolate prices, the media reported.
Major cocoa facilities in
Ghana and Cote d'Ivoire have stopped or reduced production because they cannot afford to purchase beans, the Western media reported, citing four trade sources. As a result, global chocolate prices are expected to rise significantly.
In addition, chocolate manufacturers have already
raised costs for customers due to three consecutive years of insufficient cocoa harvests. A fourth year of poor harvests is expected in the two countries that produce about 60% of the world's cocoa, the media reported.
In the past year, cocoa prices have increased by over twofold, reaching a series of all-time highs.
It's important to note that chocolate manufacturers are unable to produce chocolate directly from raw cocoa. Instead, they rely on processors to transform cocoa beans into cocoa butter and cocoa liquor, which can then be used to make chocolate. However, the processors reportedly claim that they cannot afford to buy the beans.
Transcao, a state-owned bean processor in
Cote d'Ivoire, has announced that it had stopped purchasing beans due to the high price, adding that it is so far continuing its operations by processing beans from its existing stock, according to the report.
Furthermore, top cocoa producer Cote d'Ivoire, which supplies nearly half of the world's cocoa, may shortly shut down more major state-run facilities, the media said.
In Ghana, the world's second-largest producer of cocoa, most of the country's eight cocoa processing plants have been forced to suspend work multiple times for several weeks at a time since the start of the cocoa season in October. This includes the state-owned Cocoa Processing Company, which is reportedly currently running at only 20% of its capacity due to a scarcity of cocoa beans.
However, the chocolate industry suffers not only from unpredictable weather conditions that result in poor harvests and then high prices for cocoa beans, but also from the failure of major brands to pay
farmers enough for their hard work.
For example, only about 20% of brands (or 17 out of 84) are recognized as using
chocolate from suppliers who guarantee farmers are paid enough, the media reported last December, citing an analysis by the UK-based research organization
Ethical Consumer.
Cocoa production is a source of livelihood for millions of people in West Africa. Farmers, though, receive a mere 6-11% of the $100 billion chocolate industry's revenues, according to the research.
