Heavy rainfall damages Côte d’Ivoire’s Cocoa harvest

Chocolate manufacturers are preparing for yet another challenge in cocoa supply after Cote D’Ivoire reported significant damage to its crop following heavy rainfall.

Cote D’Ivoire, which supplies 40% of the World’s Cocoa, said warehouses are still empty with expectations of a harvest 3 to 4 times due to bad weather.

Cocoa represents 50% of Cote D’Ivoire’s export revenue and employs a fifth of the population.

The country’s cocoa farmers have also been struggling for years with the Cocoa Swollen Shoot Virus (CSSV) which reduced yields in some areas by as much as 50%.

The shortage of cocoa beans caused by CSSV, combined with other factors like adverse weather conditions, led to a sharp increase in cocoa prices. In 2024, cocoa prices reached historical highs, with prices nearly tripling from the previous year.

In 2024, cocoa prices peaked at around $11,000 per metric ton, up from roughly $2,500 in previous years.

The same year, retail chocolate prices in the US increased by about 10% in 2023, significantly higher than the rate of consumer inflation

Chocolate manufacturers faced higher costs for raw materials due to the increased cocoa prices. This affected their profit margins and led to higher prices for chocolate products.