The price of cocoa exceeds USD 9,000 per metric ton for the first time

The price of cocoa exceeds USD 9,000 per metric ton for the first time on March 25, 2024, due to the lower supply of this tropical fruit. This rebound has even caused cocoa to be more expensive than copper (the reference industrial metal), Bloomberg reported.

According to Anecacao, Ecuador is “in a historic position. Although there was a similar rise in the price of cocoa during the 1970s, it did not reach current levels.

The National Association of Cocoa Exporters (Anecacao)  reported in a statement that Ecuador is “in a historic position. Although there was a similar rise in the price of cocoa during the 1970s, it did not reach current levels.”  On March 22, 2024, for example, the price of Ecuadorian cocoa already exceeded USD 8,900 per metric ton.

The current prices of this raw material respond to the drop in cocoa production in (Africa) Ivory Coast and Ghana – the main producers of this tropical fruit worldwide – due to bad weather and crop diseases. This “has generated a wave of speculation in the cocoa markets of New York and London,” said Anecacao.

What does the high price of cocoa imply?

The increase in the price of this raw material has generated, on the one hand, greater income for farmers. On average, people who are dedicated to this productive activity currently receive 3.8 times more (USD 380) for a quintal of cocoa. For this same amount they received USD 100 a year ago, Anecacao emphasized.

Meanwhile, for the cocoa supply chain this situation “has generated concerns and doubts,” because Ecuadorian exporters depend on the financial flow. That is, the exporter needs double the investment to access that same ton that three months ago cost USD 4,500, the Association states.

Anecacao added that ” Ecuador is the country that pays the highest price to the producer worldwide” directly because “they do not have regularization.” In the country, the producer receives 92% of the farm gate price.

In   the cocoa sector it generates more than 400,000 direct and indirect jobs. Producers and exporters, among others, participate in this productive activity.

The high price of cocoa and exports

For this year, with this price increase, it is estimated that cocoa exports in Ecuador will amount to USD 1.8 billion or 2 billion. Thus, this raw material becomes the third non-oil export force of the country in monetary terms. Shrimp and banana are expected to be located earlier.