Cocoa Prices Surging Faster Than Bitcoin, Stabilization Not Expected Soon

Cocoa prices have seen a significant increase in recent months, with one ton now costing more than $10,000. This rise is due to disappointing harvests and other factors such as El Niño, which has led to drought in Africa. Despite these challenges, investing in cocoa could prove to be profitable as the price has reached unprecedented heights.

On the New York futures market, $10,047 was paid for a ton of cocoa beans on Tuesday, an 186 percent increase compared to a month ago when cocoa cost almost $6,000 per ton. This is even faster than the rise of Bitcoin, which has risen 150 percent. The high price of cocoa can be attributed to poor harvests caused by older and diseased trees as well as extreme weather conditions in Ghana and the Ivory Coast. Efforts are being made to increase production in Brazil and Ecuador but it will take years for these trees to bear fruit.

Belgian chocolate producers are facing a challenge in the coming years as the industry is worth 6.1 billion euros with exports accounting for 3.4 billion euros. Belgium is the world’s second largest exporter of chocolate, representing 11 percent of the world market. The port of Antwerp is also the largest storage location for cocoa beans in the world. As a result of the high cocoa prices, the cost of chocolate is expected to increase although not as quickly as the price of cocoa. Large companies like Hershey and Mondelez have already indicated that they will pass on these record prices to consumers while Belgian producers like Libeert can partially protect themselves by buying cocoa at times when the price is low.

By Sophia Gonzalez

As a content writer at newsgreg.com, I am dedicated to crafting engaging stories that captivate our readers. With a knack for turning complex topics into accessible and compelling narratives, I weave words together to inform and inspire. My passion lies in delivering accurate and thought-provoking content that keeps our audience informed and entertained. From breaking news stories to in-depth features, I strive to bring a fresh perspective to every piece I create. Join me on this journey of exploration and discovery through the power of words at newsgreg.com.

Leave a Reply