Cocoa bean surpasses Bitcoin

2025-02-05 07:37:24

(MENAFN) Cocoa has emerged as the best-performing commodity of 2024, surpassing Bitcoin, according to Bloomberg. While Bitcoin drew significant attention this year after breaking the $100,000 mark in December, cocoa prices have surged nearly threefold since January. The rise has been driven by severe production issues in West Africa, the world's largest cocoa-producing region, leading to major supply shortages.

Cocoa futures started 2024 at around $4,000 per tonne, peaking at $12,700 by mid-December, as reported by Trading Economics. In contrast, Bitcoin saw a gain of approximately 128%, climbing from just over $41,000 in January to $106,500 in December.

The cocoa price hike is largely attributed to extreme weather conditions and fertilizer shortages in West Africa, where drought and record-high temperatures in the Ivory Coast and Ghana have severely impacted production. Additionally, the region faces a soil health crisis, with two-thirds of the land degraded, compounded by insufficient fertilizer use. Ongoing supply issues and climate change are expected to keep cocoa prices elevated throughout the coming year.

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