Cocoa exports increased in value 145% until March, due to price increases

Since mid-April, the price of cocoa began to decline in the international market; This May 20, it stands at USD 7,151 per ton.

Ecuadorian cocoa grew the most in exports in the first quarter , among the main products in the exportable basket, due to the record prices of the fruit.

Between January and March 2024, Ecuador exported 101,000 tons of cocoa and processors, which represents an increase of 30% compared to the same period in 2023, according to the ECB.

Meanwhile, the value of cocoa exports increased by 145% or USD 302 million compared to the first three months of the previous year, for a total amount of shipments abroad of USD 510.8 million.

The rise in exports of the ‘golden nugget’ responds to the historic increase in cocoa prices in 2024, reaching a ceiling of USD 11,499 per metric ton on April 19, in the international market.

However, after that peak it began to decline; By May 20, at 11:00, it was already at USD 7,151, according to the Investing.com page.

The fall in price is due to the fact that speculators are liquidating the purchases they made weeks ago in the futures market to obtain profits, explains Merlyn Casonova, executive director of the National Association of Cocoa Exporters (Anecacao).

The fluctuation in the price of cocoa in the international market has caused several actors in the chain to lose money due to breaches of contracts by intermediaries, adds Casanova.

Why did the price rise to historic levels?

The exorbitant prices of cocoa have their origin in a drop in the harvest of the African countries of Ivory Coast and Ghana, responsible for 60% of the world’s production of the grain.

Ivory Coast is the largest producer of cocoa in the world, with a volume of almost seven million tons of beans per year, while Ghana is the second, with a production of 1.3 million tons per year.

But now signs that trading companies are delaying some of their cocoa purchases in West Africa until next season have put downward pressure on prices, says the Hightower Report, cited by Bloomberg.

According to the same report, the drop in prices could offer relief to cocoa buyers.