Global cocoa market sees steep price rise amid supply shortfall

Cocoa bean prices have climbed to record nominal levels over the past six months, more than doubling since August 2023 (Figure 1). This price spike has largely been driven by weather-related diseases that have reduced cocoa production in key West African countries accounting for almost three quarters of world supplies.

Cocoa processors are now seeking alternative sources in Asia and Central and South America to fulfill contracts, contributing to a parallel rise in futures prices. On March 26, prices on the May 2024 cocoa futures contract on the ICE exchange were over $9,600 per metric ton (MT).