Weather, disease to hit West Africa cocoa output
Subject Outlook for cocoa production in West Africa. Significance Erratic rainfall and outbreaks of black pod disease in Ghana, along with ethical concerns in the Ivory Coast, are driving market fears of global cocoa shortfalls for the coming 2015-16 harvesting season. Anticipating a supply crunch, cocoa futures on the London-based ICE Futures Europe and the New York-based ICE Futures US exchanges today traded at highs of 2.21 pounds per metric tonne (MT) and 3.28 dollars per MT respectively. Impacts The expansion of French retailers such as Carrefour in Ivory Coast should provide opportunities for marketing locally produced chocolate. Opposition to genetically modified cocoa crops could hamper their adoption in Ghana, marring climate resilience initiatives. If effective, clampdowns on poor labour conditions in Ivory Coast could reduce remittance flows to poorer neighbouring states. Firms providing accreditation services in response to rising demand for 'ethical' cocoa could be hampered by poor data.