According to Bloomberg, rainfall is damaging cocoa crops in Ecuador, the third largest provider in the world according the same source, which is forcing the country’s main group of exporters to cut their export forecasts for 2020. If we add the current drought in West Africa to this, the news agency affirms that the world is facing a shortage of cocoa beans.
Climate change is causing changes in rainfall patterns around the world, threatening food production. In the case of cocoa, Bloomberg says that there will be a second consecutive monthly rise in prices at a time when most of the costs of commodities fall due to the concern of the demand due to the spread of the coronavirus.
Faced with this reality, Agribusiness Intelligence analysts forecast a global cocoa supply deficit of 57,000 metric tons and estimate that the inventory-grind grain ratio has fallen to the lowest level since the mid-1980s. Meanwhile, Price Futures Group in Chicago recommends that chocolatiers reduce the size of their bars or increase retail prices to cope with the increase in the price of cocoa.