2024-07-31 02:17:47
The cocoa market has experienced significant fluctuations in its international prices, reaching historic records that have attracted worldwide attention. Ecuador, as a key producer, is influenced by these fluctuations, which could have both positive and negative consequences for its agricultural economy.
During the first half of 2024, the price of cocoa has climbed to unexpected levels, reaching as high as $12,000 per tonne in April, compared to the usual $2,000 to $4,000. This increase is attributed to production problems in countries such as Ghana and Ivory Coast, major global suppliers along with Ecuador, and despite current gains, experts warn of the risk of a possible global overproduction if increases in planting are not strategically managed.
Cristian Melo from the International University of Ecuador points out that although increasing cocoa planting is tempting, the time needed for these new plantations to become effective production is at least three years, this situation
This, combined with similar incentives globally, could create an excess of supply that eventually drives prices below production costs.
Despite the uncertainties, Merlyn Casanova of Anecacao considers an imminent overproduction unlikely, highlighting that Ecuador, although a major player, does not produce on the same scale as world leaders, however, he recognizes that an eventual fall in international prices could negatively affect local producers, limiting their capacity for investment and development. Meanwhile, Esteban Sáenz of Aprocafa and other leaders in the sector see a promising future for Ecuadorian cocoa, projecting sustained growth driven by improvements in bean quality and yield.
By: Ecuador Live