CHOCOLATE PRICES

Chocolate prices to rise again as African cocoa processing slows down

By our African Marketing Confederation News Team | 2024

Critical processing facilities in Ghana and Côte d’Ivoire are again cutting output as they can’t afford to buy cocoa beans.

Chocolate prices around the world are likely to continue to rise, as cocoa processing plants in two key African countries, Ghana and Côte d’Ivoire, cut production because they are unable to afford to buy beans. Combined, the two countries that produce nearly 60% of the world’s cocoa.

Photo by Pixabay via Pexels

 

According to a report by news agency Reuters, chocolate-makers around the world have already increased prices to consumers after three years of poor cocoa harvests, with a fourth now expected. 

 

The agency bases its report on information received from four separate trading sources. 

 

The African-based processing plants are essential to chocolate manufacturing, as raw cocoa beans must first be turned into butter and liquor that can be used in chocolate-making facilities around the world. 

 

Reuters says state-controlled bean processor Transcao, one of Côte d’Ivoire’s nine major plants, has stopped buying beans because of their price. It is still processing from stock, but anonymous sources quoted in the report claim that the plant is almost idle. 

 

It is a similar situation in Ghana, where the state-owned Cocoa Processing Company (CPC), is said to be operating at about 20% of capacity because of the shortage of beans. 

 

Supply problem has been ongoing 

 

The problem is not new. In October 2023, this website reported: “Cocoa prices have already gone up by nearly 50% in the past year, due mainly to smaller harvests in both countries because of adverse weather conditions and crop diseases.  

 

“Growers in Ghana and Ivory Coast are also having to pay more for imported fertilisers and pesticides – further driving up the price.” 

 

In January 2024, the industry publication, Cocoa Post, said Ghana “has been experiencing a consistent reduction in annual crop output in the last couple of years, attributed to unfavourable weather, disease, and illegal gold mining, among others”. 

 

Cocoa Post added that a production shortfall last year contributed to Ghana defaulting on supply contracts for up to 44,000 metric tonnes, for the first time in the country’s history. 

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.