The price of cocoa reached record highs on the New York Stock Exchange, hitting $10,080 per metric ton for delivery next May before settling at $9,622. This increase has shocked members of the National Association of Cocoa Exporters, as the cost of cocoa has more than tripled over the past year and is expected to rise by 129% in 2024, according to recent studies.
In Ecuador, cocoa producers are reaping the benefits of this price surge, with farmers seeing significant increases in their earnings. The price of dry cocoa has skyrocketed from $120 per quintal to over $420, marking a 250% increase, according to Merlyn Casanova, the executive director of Anecacao.
Small, medium, and large cocoa producers in Ecuador are all benefiting from these high prices, allowing them to reinvest in their plantations and improve crop quality. However, other players in the cocoa supply chain, such as exporters and chocolatiers, are facing challenges due to the sharp rise in cocoa prices.
Despite these challenges, Ecuador’s cocoa production has been steadily increasing, with the country moving up in the global rankings to become the third-largest cocoa exporter. This growth presents an opportunity for Ecuador to capture a larger share of the market, especially with production issues affecting top cocoa-producing countries like Ivory Coast and Ghana.
Overall, the surge in cocoa prices is reshaping the cocoa industry in Ecuador, with producers enjoying unprecedented earnings while other actors in the supply chain are working to adapt to the new market conditions. As the demand for cocoa continues to rise, the industry in Ecuador is poised for further growth and development.