In a world where economic trends often mirror the ebb and flow of global events, 2024 has witnessed an unexpected protagonist take center stage: cocoa. This humble bean, the foundation of our beloved chocolate, has embarked on a price journey so remarkable that it has left economists, confectioners, and consumers alike in a state of bittersweet awe. This price surge has far-reaching implications for consumers, particularly in California, and has contributed to broader concerns about food inflation.
Cocoa’s Meteoric Rise
Cocoa prices have experienced an extraordinary rally in 2024, outperforming all other major commodities, according to Bloomberg. Supply concerns pushed cocoa futures in New York to nearly $13,000 per ton last week. This surge has driven prices by almost 200% this year, making cocoa a top commodity performer.
Year To Date Percetage Gains for Cocoa Prices Compared to Orange Juice and Arabica CoffeePhoto byBloomberg
Several factors have contributed to this dramatic price surge: