Cocoa Prices Hit Record High as Climate, Smuggling, and Other Challenges Batter Global Supply

Cocoa prices have hit an unprecedented high of over $10,000 per ton due to climate impacts, illegal smuggling, and other challenges facing major cocoa suppliers like Ghana and Ivory Coast.

Rampant cocoa bean smuggling to neighboring countries as well as unchecked illegal gold mining have contributed to declining cocoa output in Ghana.

In Ivory Coast, lack of rain and hot weather threatens the vital mid-crop cocoa harvest.

Global cocoa supply is projected to fall 10.9% in 2023-2024 while demand continues to rise, widening an already significant supply deficit.

Sustainable farming initiatives like Ghana's "4Ps" program are aimed at supporting farmers and mitigating the cocoa supply crunch, but the future of cocoa production remains uncertain.