The cocoa market experiences soaring prices, surpassing $10,000 per tonne, driven by shortages that are tightening the market beyond control.

The price of cocoa surged beyond $10,000 per tonne for the first time on Tuesday, driven by a rapid price escalation triggered by poor harvests in Africa. Cocoa futures reached as high as $10,080 in New York, marking a more than twofold increase from just two months ago, with traders cautioning that a global shortage of cocoa beans could lead to higher prices for chocolate bars. However, prices later retreated to trade at $9,624. Andrew Moriarty, price reporting manager at Mintec, described the market as “out of control,” with stakeholders preparing for the repercussions. Adverse weather conditions and diseases have significantly reduced crop yields in Ivory Coast and Ghana, the top cocoa-producing countries, where more than two-thirds of the world’s cocoa beans are grown. Years of low prices have left cash-strapped farmers in West Africa unable to invest in their plantations, resulting in many farms being populated by old, decaying trees that are highly susceptible to disease and extreme weather events. Consequently, a global cocoa deficit has emerged for the third consecutive year, fueling an unprecedented surge in prices. Just two months ago, cocoa traded in New York below $5,000 per tonne, and a year ago, it was below $3,000. Meanwhile, London cocoa futures have more than doubled since the beginning of February and have tripled compared to the same period last year.