Global cocoa prices are rising, impacting chocolate producers, CNN Business reported on Thursday.
Global cocoa harvests are suffering, with weather patterns, crop disease, and heavy rains to blame. But despite the shortfall, demand for cocoa-heavy products, especially in Europe and Asia, continues to rise. Consequently, cocoa futures have jumped 21% this year, a sign of supply is unable to match demand.
The current season's cocoa yields are underwhelming, likely due to crop disease and heavy rains, and the upcoming season could be even worse due to El Niño, a weather phenomenon in the tropical Pacific Ocean.
In Ivory Coast, the world's top cocoa supplier, heavy rains could further delay spring and fall harvests, as rain and humidity make crop disease more likely.
The International Cocoa Organization's April report predicts a supply deficit in the 2022/23 cocoa season due to reduced production. And with crop disease potentially playing a role in the disappointing results, it looks like cocoa harvests may continue to suffer in the coming months.