CropGPT - Cocoa - Week 41

CropGPT - Podcast for Soft Commodities

Global Cocoa Market Weekly Summary: Key Highlights for October 13, 2024

• Côte d'Ivoire: Côte d'Ivoire continues to dominate the global cocoa market, producing over 2 million tonnes of cocoa beans annually. The country is also expanding its cocoa processing capacity, with the Transcao plant aiming for a processing capacity of 190,000 tonnes by 2025. Despite these advancements, challenges such as severe weather affecting harvest and transportation, smuggling issues, and decreasing cocoa bean quality due to heavy rains are causing market price fluctuations and economic strain.
• Ghana: Ghana, with nearly 500,000 tonnes of annual cocoa production, is working closely with Côte d'Ivoire to enhance competitiveness and sustainability. Cocoa arrivals have increased, reflecting improvements in local processing and handling. However, Ghana faces issues such as smuggling, labor unrest (e.g., the Cocoa Carriers Association strike), and adverse weather, which have led to a downward revision of the 2024-2025 cocoa production forecast, further impacting market dynamics.
• Brazil: Brazil is expanding its cocoa export portfolio by entering the Eurasian Economic Union, creating new market opportunities. This expansion aligns with Brazil’s goal of diversifying its international trade relationships. In 2024, Brazil exported $865 million worth of agricultural products to the union, reinforcing its economic growth and global trade presence.
• Dominican Republic: The Dominican Republic has experienced significant growth in its cocoa export sector, with exports reaching $359.1 million from January to August 2024, marking a 92.9% year-on-year increase. This growth is driven by rising demand for cocoa beans, butter, and premium chocolate products, particularly from the United States and Europe. The country’s increasing influence in the cocoa market is further highlighted by its participation in global events like the Northwest Chocolate Festival in Seattle.

These profiles demonstrate the complex challenges and opportunities faced by key cocoa-producing nations, highlighting the dynamics of domestic conditions and global market pressures shaping the cocoa industry’s future.

For more detailed reports on the Cocoa market, including crop health data, 20 years of weather data, pricing, and earnings analysis, visit the CropGPT website.