This is the third blog on the cocoa industry in Australia and globally. The world price of cocoa did not change much in the past 25 years, average price was US$2,5000 to US$3,300. Then in 2023 the consequences of poor practices in West Africa (Ghana and Cote d’Ivoire) caught up with the chocolate world.
Farmers in those countries have been doing it tough for many years, but the past 3 years of reduced harvests caused the price of cocoa to rise as the undersupply of beans takes hold.
Global cocoa production
Ghana and Cote d’Ivoire produce 70% of world’s cocoa. But production has been down in the past 3 years. The global market is in deficit; estimated at 25% of usual production. Bean stock in store is running down and the new contract prices in NY and London are way up on the 25 average price. Increased global demand is plus 150 tonnes pa. The global price at 10/1/2025 is US$10,600 for a New York contract. It was as high as US$11,000.
In case we need reminding, Ghana and Core d’Ivoire are in decline. Cocobod, the Ghanian Cocoa Board, expects a much-increased harvest this year. Let’s see.
Australian cocoa
In FNQ, cocoa plantings are slowly increasing. See Charley’s October Blog ‘Could you be a cocoa farmer.’
Cocoa growing in Australia occurs in FNQ in the LGAs of Cassowary Coast, Cairns, and Douglas Shire. These LGAs support some 80,000 hectares of sugar cane. COCAO has a medium-term vision for 1000 hectares of cocoa FNQ. At good yields (3 tonnes per hect) this translates to 3,000 tonnes of cocoa annually. Compare this with PNG on 40,000 tonnes. The revenue per hectare for sugar in the three ‘sugar’ LGAs at the 2020/21 census was A$3,500.
What makes Australian cocoa price competitive. It’s about yield and input costs. Australian farmers are low cost produces at scale. CACOA research suggests we can be competitive. High yielding baby cocoa trees are now available.
References
ICCO reports
- https://www.icco.org/wp-content/uploads/Production_QBCS-L-No.-3.pdf
- https://www.icco.org/wp-content/uploads/Supply-Demand_QBCS-L-No.-3.pdf
Blog-Could you be a cocoa farmer - https://www.charleys.com.au/blog/could-you-be-a-cocoa-farmer/
Cocobod (Ghanian Cocoa Board)