Why are cocoa futures so high?
Cocoa prices have soared in recent years, hitting record highs amid adverse weather conditions, pest outbreaks and supply tightness in West Africa, which produces around three-quarters of global supply. Global demand for cocoa is fast rising—and producers are struggling to keep pace. It can take an entire year for a cocoa tree to produce the cocoa in just half a pound of chocolate. Older trees also yield less cocoa, and most of the world’s cocoa plantations are well past their peak production years.Côte d’Ivoire is the world’s leading cocoa producing country. Around 2 million tonnes of cocoa are produced in this coastal country. That is approximately 38 % of the world’s cocoa. This industry accounts for 15 % of the country’s gross domestic product.Cocoa farming is highly profitable due to the growing demand for chocolate and other cocoa products. The profitability depends on factors like yield per hectare, market price, and cost of production. Average Yield: 400-600kg per hectare per year. Price per Kg: ₦13000 – ₦15000 (as of 2024).Cocoa Prices Surge to Record Highs Even today, in 2025, prices remain high at $6,000–$8,000/ton. In the UK, cocoa climbed from £1,900/tonne in early 2023 to nearly £9,000/tonne in early 2025 — more than a 4x increase. This surge is forcing up cocoa powder prices and leading to supply shortages in stores.
What is the price of cocoa in 2025?
On 4th August 2025, Government announced a producer price of cocoa for the 2025/2026 season at GHS3,228. GHS51,660 (US$5,040) per tonne, representing 70% of the average Gross FoB price of US$7,200 per tonne. One of the key causes of the cocoa crisis is weather having a negative impact on yields. The process of cocoa production requires very specific climatic conditions.Climate risks shape cocoa futures increasing climate risks to production means greater costs for buyers. Forced to pay more for cocoa, chocolate companies have adopted various strategies to maintain profitability — overall, passing the price on to consumers.The shift put huge strains on industry stakeholders and led to inevitable price increases for customers at the checkout. However, improving conditions through spring 2025 saw global cocoa production recovering and prices beginning to fall.Child Labor & Slave Labor on Cocoa Farms Intensely-farmed cacao requires lots of labor to upkeep trees and harvest the pods, and then remove the seeds and process them. When a farmer doesn’t have enough money to pay a worker, often the burden to help with harvest falls upon the other family members, including children.
Is cocoa good to invest in?
Cocoa is a luxury commodity and a crucial ingredient in many of life’s finer things: from sweets to pharmaceuticals, to various cultural dishes. Its popularity makes it a prominent asset on the stock market, but supply problems, environmental and political issues can sometimes make it an unstable investment. Should I invest in cocoa? Exposure to cocoa may suit traders seeking to engage with commodity market dynamics rather than holding long-term equities. US Cocoa CFDs and Cocoa UK CFDs allow speculation on price moves without owning the underlying commodity, but they track futures prices and require margin.
Who is the biggest trader of cocoa?
Germany is the biggest cocoa exporter in the world, with cocoa exports worth $7. Olam food ingredients are the biggest cocoa suppliers in the world with an export revenue of $4. Cocoa employs approximately 800,000 farm families spread over six of the sixteen regions of Ghana. The crop generates about $2 billion in foreign exchange annually and is a major contributor to Government Revenue and GDP.Ghana is the world’s second-largest cocoa-producing country (Côte d’Ivoire is the largest). Cocoa Life has been active in Ghana since 2008, when it began as the Cadbury Cocoa Partnership.Higher cocoa production by Ghana is bearish for cocoa prices. On July 1, the Ghana Cocoa Board projected the 2025/26 Ghana cocoa crop would increase by +8. MT in 2024/25.Côte d’Ivoire (the Ivory Coast) is the largest producer of cocoa in the world, producing over 2 million tons a year. About 75 percent of the land in Côte d’Ivoire is suitable for growing crops, and almost half of its citizens work in agriculture, including many children.Global Hotspots for Cocoa Production With 2. Côte d’Ivoire is the world’s largest producer, accounting for a third of the global total.
Why is the price of cocoa dropping?
The highly volatile price of cocoa declined over 40% in global markets as drought concerns eased in West Africa and harvest increases. The ton price of cocoa dropped below $7,000, declining more than 40% since the end of 2024. Estimates of increased supply and weakening demand led to sharp declines. With cocoa prices more than doubling over the past two years as a result of poor harvests in west Africa, including Ghana and Ivory Coast, even something aimed at gift buyers was being priced off the shelf.Cocoa prices have eased from the record highs of late 2024, but a knock-on effect is still being passed through from chocolatiers onto consumers, according to analysts.Cocoa supply is expected to improve in 2025 due to favorable weather conditions in West Africa. The continuously challenging weather in West Africa, where most of the world’s cocoa supply comes from, led to the highest prices of cocoa products in history.Expectations of abundant global cocoa supplies are hammering cocoa prices. Cocoa deliveries in Ghana have surged, weighing on prices. Cocoa arrivals to ports in Ghana in the four weeks ending September 4 reached 50,440 MT compared to about 11,000 MT delivered in the same period in 2024.