Are We Running Out of Cocoa?
Ghana and Côte d’Ivoire, which produce 60% of the world’s cocoa, are about to close their processing plants due to a bean shortage. The impact on chocolate prices and farmers’ livelihoods is a major concern, as chocolate makers worldwide depend on West Africa for their chocolate supply which is getting shorter. Michael Odijie, a researcher on cocoa, outlines the causes of the scarcity.
One environmental factor is the influence of the El Niño weather phenomenon, which has led to drier weather in West Africa. It has exacerbated issues on farms, like the disease caused by the swollen shoot virus. As a result, harvests from about 500,000 hectares of land in Ghana have decreased recently.
The natural patterns of growth and contraction in cocoa farming are referred to as the economic cycle of cocoa production. For instance, cocoa trees require much maintenance because they are more prone to disease as they age. Farmers have historically had a tendency to start over in new forests rather than abandoning old farms. Unfortunately, it’s getting harder and harder to find new forests these days, causing the chocolate supply to get shorter and shorter.
How Can Others Help?
The World Bank provided a $200 million loan to the Ghana Cocoa Board (Cocobod), which oversees the nation’s cocoa industry, and in February 2024, to help plantations damaged by the cocoa swollen shoot virus. The board will take over the infected farms, which will replace and remove the affected cocoa trees and bring the newly planted plants to fruition before returning them to the farmers.
In Ghana, Cocobod has a long history of taking out loans to support farmers. For example, in 2018, Cocobod rehabilitated disease-hit and old plantations with a portion of a $600 million loan from the African Development Bank. In October, the global price surge for farmers, forced the producer price to rise at the start of the harvest season. A task force has also been formed by Ghana Cocobod to protect cocoa farms from the negative effects of mining.
In an effort to stop the shortage of cocoa to nearby nations—especially those with stronger currencies—it has partnered with law enforcement. Relatively, little has been done in Côte d’Ivoire. It seems that the administration is still evaluating the circumstances. However, actions to stop the smuggling of cocoa have been taken because the scarcity is making neighboring countries’ prices rise.
Is This Affecting Farmers?
At the farm level, the situation is not clear-cut, even though farmers may at first see the price increase as advantageous. Reduced output generally results in fewer harvests, meaning that farmers are not making more money overall. Recent economic difficulties in West Africa, including high inflation and currency devaluation, especially in Ghana, exacerbate this problem. Farmers are now poorer as a result of these circumstances.
A decrease in shortage local processing is another effect of the output decline. Major African processing factories in Ghana and Côte d’Ivoire have lowered capacity or closed because they cannot afford beans. This implies shortage that chocolate prices will probably rise globally.
The local production units that have been popping up lately are thus badly impacted by this. But it appears that the nations of West Africa, that produce cocoa, now have more negotiating power. These countries should band together and negotiate better conditions for their cocoa growers at this time.
What is the Cause of This?
The most straightforward reason for the continued shortage of chocolate is extreme weather that is being made worse by climate change. Owing to extreme heat and drought, West African harvests have declined, partly owing to the continuing El Niño phenomenon. Black pod disease, which makes cocoa pods rot on the branch, is flourishing thanks to heavier-than-normal rains and causing the chocolate supply to get shorter.
The swollen branch virus, which kills cocoa trees, has spread faster in cocoa-growing countries. According to Reuters, global cocoa production is expected to fall by nearly 11% this season. When supply fell and prices rose, farmers planted more cocoa, which increased shortage supply five years later when the new trees bore fruit, according to Nicko Debenham, former head of sustainability at Barry Callebaut.
There are already farmers in West Africa racing to plant more trees. They may be unable to plant their way out of a chocolate shortage. As a result of less predictable rainfall, which poses a challenge for moisture-sensitive cocoa trees, Debhenham told people that “climate change is definitely a challenge.” In addition, some cocoa-growing regions will become unusable due to rising temperatures and more frequent droughts.
Written by Shontasia Gregory
Sources:
NY Post: Global chocolate supply under ‘real threat’ from rapidly spreading virus: expert
The Atlantic Chocolate might never be the same
Reuters African cocoa plants run out of beans as global chocolate crisis deepens
Featured Image Courtesy of tracy Benjamin-Creative Commons License
Inset Image Courtesy of Ellyn B -Creative Commons License
