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Cocoa shortage hikes prices in world mart

COCOA farmers have the opportunity to make more money if they take advantage of the rising cocoa prices.
According to the PNG Cocoa Board, cocoa prices in the world and domestic market are on the rise again due to a shortage of stocks both on the world and domestic market with no fresh new supply from major origins like Ivory Coast, Ghana, Brazil and Asian countries.
The international cocoa daily price over the four months from last December to this month closed above US$1,600/tonne benchmark and each month’s price averaged between US$1,606/tonne and US$1,761/tonne.
At the domestic market, the delivered in store price followed the international market and the board recorded very promising cocoa prices which ranged from K260 a bag last December to K320 a bag this month.
“We are anticipating that cocoa prices have the potential to increase in the coming months as the world supply of cocoa stock in the first mid crop season (Dec-March) comes to an end,” PNG Cocoa Board chief executive Lauatu Tautea said.
He said the second part of the main crops in Cote d’Ivore, Ghana and Nigeria, as well as the mid crops were expected to be below potential.
“These three countries produce more than 60% of the world cocoa bean output and in addition, some undersupplied chocolate manufacturers are likely to become more aggressive buyers,” Mr Tautea said.
The movement of the currency also played a very important role in the general increase in the world and domestic cocoa market place.
In this current situation, our much weaker currency of US$0.3119 up against the high New York terminal market price encourages the domestic price to appreciate,” he said.