(MENAFN) Farmers across Latin America are mobilizing to capitalize on soaring cocoa prices, racing against time to expand planting areas amidst a global supply shortage. Key cocoa-producing markets such as Ecuador, Brazil, Peru, and Colombia are witnessing a surge in demand for seedlings as farmers strive to increase the acreage devoted to cocoa cultivation. In Ecuador, for instance, the Cocoa Exporters Association anticipates that the total planted area of cocoa will surpass 600,000 hectares this year, marking a significant uptick from 500,000 hectares recorded last year. While comprehensive data on new plantings is not readily available for other countries in the region, industry observers note a palpable uptick in cocoa production across Latin America.
Paul Hutchinson, head of strategic business operations at Olam Food Ingredients, a leading commodity supplier, underscores the widespread expansion of cocoa farming activities beyond Ecuador. Significant growth is observed in Peru, Colombia, and Brazil, with farmers eager to capitalize on the lucrative cocoa market. The surge in cocoa futures prices in New York, reaching USD12,191 per ton last week compared to less than USD3,000 per ton a year ago, has incentivized farmers to ramp up cocoa cultivation. Nico Debenham, former head of sustainability at Barry Callebaut, the world's largest chocolate manufacturer, emphasizes the allure of cocoa cultivation amidst such favorable market conditions. With cocoa prices at historic highs, farmers are compelled to seize the opportunity, diverting resources towards cocoa planting instead of other crops.
The unprecedented rise in cocoa prices underscores the pivotal role of market dynamics in shaping agricultural practices in Latin America. As farmers respond to shifting economic incentives, cocoa cultivation emerges as a lucrative venture with the potential for substantial returns. The expansion of cocoa planting areas not only reflects the resilience and adaptability of Latin American agricultural communities but also underscores the region's significance as a key player in the global cocoa market. Amidst evolving market trends and supply chain disruptions, the surge in cocoa production in Latin America highlights the imperative for stakeholders to address sustainability and supply chain resilience to ensure the long-term viability of cocoa farming in the region.
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