Climate Change Impacts Chocolate Prices and Cocoa Production in 2024
- Environmental disruptions caused by climate change are killing cacao trees and affecting chocolate production globally.
- Recent data highlights a dramatic increase in cocoa bean prices, attributed to extreme weather patterns negatively impacting crop yields.
- Efforts are underway in the U.S. and Europe to promote sustainable cocoa practices to combat these challenges and ensure future supplies.
Cote d'Ivoire and Ghana, which account for over half of the global cocoa bean production, are facing significant challenges due to climate change. Environmental changes such as increased heat and rainfall have facilitated the spread of pests and diseases affecting cacao trees, leading to higher mortality rates among these vital plants. This environmental disruption is expected to result in declining harvests for a third consecutive year, putting pressure on global cocoa supplies. In recent months, cocoa bean prices have surged dramatically, with reports indicating a 136% increase from July 2022 to February 2024. The United Nations Conference on Trade and Development (UNCTAD) has pointed to extreme weather patterns as a core reason for fluctuating crop yields, emphasizing that these challenges are compelling stakeholders to rethink cocoa sourcing and production strategies. In response to these pressing issues, U.S. and European stakeholders are increasingly turning to sustainable cocoa practices. Initiatives such as Germany’s “German Initiative on Sustainable Cocoa” aim to improve sourcing methods and ensure that cocoa production is environmentally sustainable. Switzerland has set a goal to source 80% of its cocoa imports sustainably by 2025, indicating a significant shift in how chocolate producers approach cocoa sourcing. As the chocolate industry grapples with these challenges, it is clear that collaborative efforts toward sustainability are crucial for stabilizing the future of cocoa production. Ensuring sustainable practices will not only help counteract the adverse effects of climate change but also secure the supply chains essential to the global chocolate market.