Cacao Price Volatility

Since the beginning of the year, the cost of cacao beans has been on a steady increase. This surge is driven by decreased harvests in Africa and unfavorable weather conditions in Peru, which have resulted in difficult transportation and access to plantations. As a global commodity, cacao responds to worldwide market dynamics, and these disruptions have impacted us all.

The cacao market has reached new historical highs in recent months, with prices more than doubling in the first three months of 2024 due to the worst supply shortage in 40 years, the estimated shortfall of about 450,000 tons of cacao, which is around 10% of the global cacao crop.

Factors driving the price surge:

African harvest declines:

   - Ghana's challenges: Ghana, the world's second-largest cacao producer, has faced severe challenges, leading to production falling nearly 40% below targets for the 2023/24 season. Issues include strong winds, poor rainfall, and smuggling.

   - Disease outbreaks: Severe cacao disease outbreaks (such as black pod) in West Africa may cause further shortages next season.

Peruvian weather conditions:

   - Unfavorable weather in Peru has made transportation and plantation access difficult, further straining global supplies.

Projections for the upcoming months indicate a continued decrease in the supply of cacao beans from Africa. This expected decrease will likely sustain the high prices, reflecting the ongoing challenges in production and distribution. However, at Maretai Organics, we are committed to maintaining our prices and providing you with high-quality organic cacao. We believe in the importance of supporting sustainable practices and fair trade initiatives that can help stabilize the market and ensure a steady supply of this precious commodity.

We are hopeful that through collaborative efforts and innovative solutions, we can navigate these challenging times and look forward to a more stable and prosperous future for the cacao industry. Thank you for your continued support and trust in Maretai Organics.