CropGPT - Cocoa - Week 44

CropGPT - Podcast for Soft Commodities

Weekly Global Cocoa Market Summary – November 3, 2024

• Ghana: Cocoa farmers in Ghana have raised concerns with the national regulator, Cocobod, about insufficient compensation and environmental issues despite a 45% price increase for the 2024-25 season. The price increase to 48,000 cedis per metric ton has not been sufficient to provide a living income. Social and environmental issues, including child labor and deforestation, are compounded by recent price volatility. In response, Cocobod has reduced its production forecast to 650,000 metric tons due to adverse weather conditions and crop diseases.
• Ivory Coast: Cocoa shipments from the Ivory Coast have surged by 26% year-over-year, reaching 284,633 metric tons in October alone. Consequently, the 2024-25 production forecast has been revised upward to 2.1-2.2 million metric tons, a revision from the earlier estimate of 2 million metric tons. This growth highlights the ongoing challenges of balancing supply amidst fluctuating global demand and environmental factors.
• Nigeria: Nigeria's cocoa exports increased by 6.8% year-over-year through August, benefiting from local currency sales that offset global price declines. However, the country faces challenges in expanding value-added processing for global markets, relying heavily on raw bean sales. The cocoa sector is also under pressure from new European Union deforestation regulations, which could impact Nigeria’s ability to meet international standards.
• Cameroon: In Cameroon, cocoa production rose by 1.2% for the 2023-24 season, totaling 266,725 metric tons. Despite this modest increase, global price pressures and sustainability concerns are casting a bearish outlook for the sector, challenging Cameroon to grow while adhering to sustainable practices.
• European Union Regulations: The European Union is advancing regulations to address environmental degradation in the cocoa sector. Key measures include the European Union Deforestation Regulation, which affects Nigerian exports, as the EU imports 67% of Nigeria's cocoa. The Corporate Sustainability Due Diligence Directive also mandates transparency and sustainable practices in the cocoa supply chain.

For more in-depth reporting and analysis on the global cocoa market, including crop health reports, weather data, and pricing trends, visit the CropGPT website. This podcast is a brief overview of key developments for the week.