By IFCMarkets

Cocoa harvest in West Africa may decline

According to the Council, the cocoa harvest in Ghana will amount to 780 thousand tons, which is less than its October forecast of 800 thousand tons. From October to mid-April, cocoa exports from Ghana fell by 0.9% over the same period of the previous season. Ghana is the 2nd largest cocoa producer in the world after Côte d’Ivoire. Together, these two countries provide slightly less than 70% of the global cocoa crop. From October to early May, cocoa exports from Côte d’Ivoire amounted to 1.89 million tons, which is only 1.1% more than in the same period last season. Meanwhile, quarantine due to the coronavirus pandemic has caused an increase in demand for chocolate products. According to the US marketing agency Nielsen, chocolate and cocoa sales in the United States since the beginning of the year increased by 5.7%. The European Cocoa Association reported an increase in cocoa processing in Europe in the 1st quarter of 2020 by 0.9% to 373.6 thousand tons compared to last year. This is the maximum volume observed in the 1st quarter since 2003. Note that cocoa quotes are highly dependent on the weather in West Africa.

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