Côte d’Ivoire to reduce cocoa exports due to bad harvest

Bad news for the chocolate market that could send already high prices skyrocketing. Côte d’Ivoire plans to slash its exports of cocoa in view of prospects of a bad harvest.

Côte d’Ivoire, the world’s second largest producer of the main chocolate ingredient, has experienced heavy rainfall that threatens to compromise crops for the second year in a row.

Reuters reported that Côte d’Ivoire’s cocoa regulator consequently cut contract sales to 1.3 million metric tons for the 2025/26 cocoa season from the usual 1.7 million tons after two weaker crops caused by climate change, ageing plantations, and the spread of plant diseases.

Earlier this month, Côte d’Ivoire, which supplies 40% of the World’s Cocoa, said warehouses were empty with expectations of a harvest 3 to 4 times smaller, due to bad weather.

Cocoa represents 50% of Côte 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.