Chocolate Prices To Keep Rising Amid Cocoa Crisis in West Africa
Key Takeaways
- West Africa’s cocoa industry faces a crisis as cocoa production in Ghana and Ivory Coast plummets due to illegal gold mining, climate change, and disease outbreaks like swollen shoot.
- Cocoa prices have doubled in the past year, with consumers already feeling the impact through higher chocolate prices, expected to double further.
- Small-scale cocoa farmers in West Africa are the hardest hit, facing destitution as their livelihoods are destroyed, while efforts to rehabilitate affected plantations fall short.
The heart-wrenching tale of Janet Gyamfi, a cocoa farmer in western Ghana, epitomizes the dire situation facing West Africa’s cocoa industry.
Gyamfi, like many others, has seen her once-thriving cocoa farm decimated, a victim of illegal gold mining and the ravages of climate change.
“It was my only means of survival,” Gyamfi tearfully recounted, surveying her barren land where cocoa trees once flourished.
“I planned to pass it on to my children.”
Ghana and Ivory Coast, long-standing powerhouses in the cocoa market, are grappling with catastrophic harvests this season.
The relentless spread of diseases like swollen shoot, exacerbated by illegal mining and climate variability, has dealt a severe blow to cocoa production.
Experts warn of a “perfect storm” brewing in West Africa’s cocoa belt, with dire consequences for global chocolate supply.
Cocoa prices have skyrocketed on the New York futures market, doubling in the past year and showing no signs of abating.
“This is a watershed moment for West Africa’s cocoa industry,” remarked cocoa expert Steve Wateridge.
“The decline in production could mark the end of its supremacy.”
Consumers are already feeling the pinch as chocolate prices surge. In the United States, Easter treats are over 10% more expensive than last year, with further price hikes expected later in the year.
Ted George, a commodities expert, cautioned that chocolate bars could become a luxury item, potentially doubling in price as the impact of West Africa’s cocoa crisis reverberates through supply chains.
The root causes of this crisis are multifaceted. Illegal gold mining, known locally as galamsey, has encroached on cocoa plantations, leaving behind environmental devastation and contaminated soil.
Farmers like Gyamfi have been left destitute, their livelihoods destroyed in the pursuit of gold.
While some farmers, according to Hospitality Ireland, have been forcibly displaced by miners, others have reluctantly sold their land, unable to withstand the pressures of declining yields and mounting debts.
Asiamah Yeboah, a cocoa farmer, lamented the decline in production and the lack of support from regulatory bodies like Cocobod.
“We are witnessing the collapse of our industry,” he said.
Cocobod, tasked with regulating Ghana’s cocoa sector, faces mounting challenges, including debt woes and the spread of diseases like swollen shoot.
Despite efforts to rehabilitate affected plantations, the scale of the crisis far outstrips available resources.
In neighboring Ivory Coast, the situation is no better, with up to 30% of cocoa plantations infected by diseases.
The prospect of a rebound in production seems distant, as climate change threatens to further shrink suitable growing areas in West Africa.
With West Africa’s cocoa industry in turmoil, attention is turning to alternative cocoa-producing regions like Latin America.
Experts predict that countries like Ecuador, Brazil, and Peru could step up production in the coming years, potentially reshaping the global cocoa market.
However, the true victims of this crisis are the millions of small-scale cocoa farmers in West Africa, whose livelihoods hang in the balance.
Activists like Antonie Fountain warn of the devastating impact on local communities and urge swift action to address the root causes of the crisis.
As chocolate prices continue to rise and supply chains strain under pressure, the plight of West Africa’s cocoa farmers serves as a sobering reminder of the human cost behind every bar of chocolate.
