Cocoa Prices Surging Faster Than Bitcoin, Stabilization Not Expected Soon

Unprecedented Profits, Unpredictable Future: The Challenges and Opportunities Facing Belgian Chocolate Producers in the Age of Climate Change

Belgian chocolate producers are facing a challenge in the coming years, as the industry is worth 6.1 billion euros, with exports accounting for 3.4 billion euros. The port of Antwerp is also the largest storage location for cocoa beans in the world. However, one ton of cocoa now costs more than $10,000 due to disappointing harvests caused by older and diseased trees as well as weather phenomenon El Niño that led to drought in Africa. More than 60 percent of global cocoa production takes place in Ghana and the Ivory Coast, where extreme weather conditions have halved harvests. Efforts to increase cocoa production in Brazil and Ecuador are underway but it will take years for these trees to bear fruit.

Despite these challenges, investing in cocoa could prove to be profitable as the price has reached unprecedented heights in recent months. On the New York futures market, $10,047 was paid for a ton of cocoa beans on Tuesday, which is a significant increase compared to a month ago when cocoa cost almost $6,000 per ton and a year ago when it was just under $3,000. The 186 percent increase in the price of cocoa is even faster than that of Bitcoin which has risen 150 percent.

The high price of cocoa can be attributed to poor harvests caused by older and diseased trees as well as weather phenomenon El Niño which led to drought in Africa. In addition to this, large companies like Hershey and Mondelez have already indicated that they will raise prices for consumers due to increased costs associated with production. Belgian producers like Libeert can partially protect themselves against these record prices by buying cocoa at times when the price is low but it will not be enough since most of their revenue comes from exporting chocolate products made from imported beans whose prices may continue to rise due to supply chain disruptions caused by climate change and other factors such as political instability or trade wars

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