CropGPT - Cocoa - Week 43

CropGPT - Podcast for Soft Commodities

Weekly Global Cocoa Market Summary – October 26, 2024

• Malaysia: The Malaysian government is intensifying efforts to revive its cocoa production, aiming to reduce its dependence on annual imports of 530,000 metric tonnes, costing the country approximately 7.8 billion ringgit. Once a major producer with nearly 300,000 metric tonnes, Malaysia's production has fallen to around 270 metric tonnes, largely due to plant diseases. To combat this, the Ministry and the Malaysian Cocoa Board are investing in superior cocoa strains and supporting disease management, alongside promoting research and encouraging young farmers to adopt improved farming techniques.
• Ivory Coast: As the leading cocoa producer globally, Ivory Coast faces challenges such as adverse weather conditions and plant diseases, impacting approximately 300,000 metric tonnes of its usual output. However, forecasts for the 2024-25 season are optimistic, with production expected to reach around 2 million metric tonnes. The government is working with Ghana to improve cocoa pricing mechanisms, aiming to raise farmer incomes amid ongoing environmental issues.
• Ghana: Ghana's cocoa industry continues to struggle with smuggling and disease outbreaks, particularly the swollen shoot disease, which severely hampers yield. For the 2024-25 season, production is not expected to exceed 500,000 metric tonnes. The government is focusing on strengthening anti-smuggling measures and improving disease management practices to maintain stable production.
• Brazil: Brazil is streamlining its cocoa export processes with the Eurasian Economic Union to boost its trade presence. This initiative is part of a broader strategy to diversify its agricultural exports, including major commodities like soybeans and coffee, enhancing Brazil's role in the global cocoa market.
• Indonesia: Key cocoa-producing regions in Indonesia, such as Sulawesi and Sumatra, are experiencing fluctuating weather conditions, which are critical for determining cocoa production outcomes. Continuous monitoring of rainfall and temperature patterns is essential to manage potential impacts on both yield and quality, ensuring preparedness for any challenges.
• Ecuador: In Ecuador's renowned cocoa-producing regions, including Guayas and Los Rios, inconsistent weather patterns are raising concerns about potential impacts on cocoa yields. The government is actively monitoring the conditions to ensure timely responses to any changes that could affect the cocoa growing season and safeguard production levels.

These insights offer a comprehensive view of the challenges and strategies shaping the cocoa industry in key global regions, from disease management to trade strategies and climate monitoring.

For more in-depth information, visit CropGPT for detailed reports on the Cocoa market, including crop health updates, historical weather data, and pricing trends. This podcast highlights just a few key developments for the week.