Cameroon raises cocoa prices by 25% amidst concerns of a potential shortage in chocolate production
- Predictions indicate another poor cocoa season is approaching.
- Cameroon is increasing prices by 25%.
- West Africa is a crucial supplier of cocoa, and weather conditions suggest a third consecutive year of global shortages.
Cameroon’s trade minister, Luc Magloire Mbarga Atangana, announced on Thursday that the fixed farmgate price for cocoa farmers for the 2023/2024 season will be raised to 1,500 CFA francs (R47) per kilogram. This represents a 25% increase from the previous season’s price of 1,200 CFA francs. The minister stated that this price hike is the highest since 2015 and is motivated by a global production shortfall.
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Milk chocolate typically contains a minimum of 25% cocoa mass, while dark chocolate has a higher proportion of cocoa.
As a general rule, the process of fermentation and roasting results in approximately 40kg of cocoa butter and 40kg of cocoa powder from every 100kg of dry beans.
London cocoa futures on the Intercontinental Exchange stabilized on Thursday after reaching a 46-year high of over R70,000 per metric ton in the previous session. Concerns about entering a third consecutive deficit in the 2023/24 (October to September) season, as well as worrisome weather indicators from the key cocoa-producing region of West Africa, continue to support prices.
West Africa, particularly the Ivory Coast, Ghana, Nigeria, Togo, and Cameroon, accounts for approximately two-thirds of the world’s total cocoa crop.
The Ivory Coast has been grappling with a significant bean shortage to fulfill forward contracts.
Recently, South African producer De Villiers Chocolate announced its closure due to challenges posed by load shedding and the cocoa price.
Despite unfavorable weather conditions, the demand for chocolate has rapidly grown in recent years. However, cocoa trees take approximately 10 years to reach full production capacity, resulting in insufficient supply.
According to some forecasts, climate change could make cocoa farming impossible by 2040.
