Critical Situation: African Cocoa Plants Depleted of Beans, Global Chocolate Crisis Deepens
Major African cocoa plants in Ivory Coast and Ghana have reportedly stopped or reduced processing due to the inability to afford to buy cocoa beans, leading to concerns of a potential surge in chocolate prices worldwide. With poor cocoa harvests for three consecutive years and expectations of a fourth, chocolate-makers have already raised prices for consumers. The two West African countries, Ivory Coast and Ghana, account for nearly 60% of the world’s cocoa production.
Cocoa prices have more than doubled over the past year, reaching record highs. The inability of processors to afford cocoa beans has led to operational challenges for major plants. Ivorian state-controlled processor Transcao has reportedly halted the purchase of beans due to their high prices, and while it continues processing from existing stock, the plant’s capacity is believed to be significantly reduced.
Sources suggest that other major state-run plants in Ivory Coast might also face closures soon, further impacting cocoa processing capacity. Even global trader Cargill reportedly faced difficulties sourcing beans for its major processing plant in Ivory Coast, leading to a temporary halt in operations last month.
In Ghana, the second-largest cocoa producer, most of its eight processing plants, including the state-owned Cocoa Processing Company (CPC), have experienced repeated work stoppages for weeks since the beginning of the cocoa season in October. The challenges in the cocoa industry highlight the complex dynamics affecting global chocolate production and prices.
