In 2023, cocoa prices skyrocketed to a 46-year high of $4,478 per metric ton, driven by adverse weather conditions and diseases impacting production in key growing regions like Ivory Coast and Ghana. While prices eased slightly to around $4,196 by year-end, this still represented a significant 61.4% annual increase (Barchart, n.d.).
This surge in prices underscores the critical importance of the cocoa commodity and its supply chain, which sustains millions of livelihoods, primarily among smallholder producers. However, rising demand has brought significant challenges, including:
Environmental Degradation: Deforestation, soil erosion, and water pollution are major concerns within the cocoa sector.
Human Rights Issues: Child labor and forced labor remain prevalent in some cocoa-producing regions.
Need for Sustainable Sourcing: The industry urgently needs to adopt more sustainable cocoa practices, such as Good Agricultural Practices (GAP) to improve yields and protect the environment.
Global Certification Standards: To ensure ethical and sustainable cocoa production.
Supply Chain Transparency: To enhance traceability and accountability.
Navigating the Evolving Regulatory Landscape: The recent implementation of regulations like the EU Deforestation Regulation (EUDR) exemplifies the shifting regulatory landscape. These regulations are pushing businesses to adopt stricter sourcing and sustainability practices.
Introducing our Sustainable Cocoa Commodity Factsheet
To assist businesses in navigating these complexities, we are pleased to announce the release of our Cocoa Commodity Factsheet. This comprehensive guide offers valuable insights into:
General information about cocoa, including production, consumption, and key players.
Good Agricultural Practices (GAP) and their importance for sustainable cocoa production.
Certification schemes available for cocoa.
Current issues facing the cocoa industry.
A detailed overview of the cocoa supply chain.
Download our Cocoa Commodity Factsheet today and gain a deeper understanding of the sustainable cocoa industry and how to align your business with global sustainability efforts.
This factsheet has been created by:
Amarilis Setyanti, Agronomy Lead
Nur Rizqi Awalliya, Agronomy Officer
Gusi Ayu Putri Chandrika Sari, Social Media Officer
Source:
Barchart. (n.d.). Cocoa futures overview. Retrieved December 19, 2024, from https://www.barchart.com/futures/quotes/CC*0/profile
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