Latest poll shows COVID-19 may lead to 10% drop in cocoa prices

Latest poll shows COVID-19 may lead to 10% drop in cocoa prices

- A poll by Reuters shows the price of cocoa may soon fall as a result of the outbreak of the coronavirus

- This is due to the rising cost of production and a fall in demand for the product

- Other factors such as the price of milk and nuts, cost of packaging, and transportation also affect the price

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A poll carried out by Reuters focused on the cocoa industry has revealed a possible 10% fall in prices of the commodity.

The drop, YEN.com.gh has learned, is a result of the rising cost of production as well as a fall in demand due to COVID-19.

The latest development will not, however, affect the price of chocolate bars as pricing of cocoa is only one of the factors that are considered in making up the retail price.

READ ALSO: Cocoa farmers appeal to government over storage systems and financial challenges

Other factors considered are prices of sugar, milk, nuts, packaging, marketing, transportation, and taxes.

Lockdowns implemented in a number of countries following the outbreak of the coronavirus led to a fall in the impulse buying of chocolate as consumers focused more on essentials.

A report by citibusinessnews.com shows there is a possibility that a bleak economic outlook would, in the coming months, hit demand for luxuries such as chocolate.

It is also expected that sales of chocolate for celebrations such as Halloween are expected to be weaker than usual.

Latest poll shows COVID-19 may lead to 10% drop in cocoa prices
Minister of Agric, Owusu Afriyie Akoto Source: graphic.com.gh
Source: UGC

In line with measures to combat poverty among farmers, chocolate makers are likely to pay an additional $400 a tonne for supplies from top producers such as Ghana and Ivory Coast in the upcoming 2020/2021 cocoa season which begins on October 1

In other news, the Ghana Cocoa Board (COCOBOD) has predicted Ghana is likely to lose $1 billion in revenue following a drop in global cocoa prices.

YEN.com.gh understands that the outbreak of the coronavirus led to a decline in cocoa prices on the world market.

This, COCOBOD explained, has stalled the current syndication process for loan facilities for the 2020/2021 crop season.

READ ALSO: COCOBOD and others announce $200 million package to grow more cocoa

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Source: Yen

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