The steep hike in global cocoa prices will likely weigh on Philippine chocolatiers and eventually trickle into the cost of the sweet treat.
BMI, a unit of Fitch Solutions, recently reported that the market sentiment for cocoa prices is still bullish due to supply-side challenges, particularly in West Africa, a cocoa powerhouse that accounts for 70 percent of global supply.
“Elevated cocoa prices will affect chocolate producers as they will increase input costs,” Cogliati told the BusinessMirror via email. “We also expect record-high prices to affect consumers, although we highlight that the price increases will be significantly smaller than those for cocoa futures,” Cogliati said.
“Steep production declines in West Africa, particularly Ivory Coast and Ghana were caused aging trees, aging farmers, farmers exiting cocoa, no investment in cocoa infrastructure, adverse weather, black pod disease, and swollen shoot virus,” Van Dort told the BusinessMirror. “Fewer participants in the market result in higher price volatility, as even small movements can have large effects on prices.”
“There is less cocoa to hedge, participants are limiting their hedge horizon, high volatility, and because it is more expensive in the margin system with elevated prices.”
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Philippine Singer Launches Movement to Unite Filipinos Against China in West Philippine Sea DisputeRannie Raymundo, a popular Filipino singer, has joined forces with the Fraternal Order of Philippine Eagles to spearhead a nationwide movement aimed at rallying Filipinos in response to escalating tensions in the West Philippine Sea. The WPS Eagles Movement seeks to foster patriotism, galvanize collective action, and counteract Chinese disinformation campaigns.
Read more »
Philippine Coast Guard Monitors Chinese Vessel in West Philippine SeaThe Philippine Coast Guard (PCG) is closely watching a Chinese Coast Guard (CCG) vessel operating illegally off the Zambales coast in the West Philippine Sea (WPS). The PCG deployed the BRP Gabriela Silang to keep a protective distance from the CCG vessel, preventing its approach to the Philippine coastline. Despite the CCG's radio challenges alleging a violation of maritime collision regulations, the PCG maintains that the core issue is the CCG's illegal presence in Philippine waters.
Read more »
China's 'Monster Ship' Continues Unlawful Operations Near Philippine TerritoryThe Philippine Coast Guard reports that China Coast Guard vessel 5901, nicknamed Beijing's 'monster ship,' continues to operate illegally near Philippine waters, despite challenges from the Philippine Navy.
Read more »
Philippines and China Hold 'Frank and Constructive' Talks on South China Sea DisputePhilippine and Chinese diplomatic officials met in Xiamen for the 10th round of the Bilateral Consultation Mechanism on the South China Sea (BCM). Discussions focused on the ongoing territorial dispute, with Philippine officials expressing concern over the presence of Chinese Coast Guard ships near Philippine maritime zones. Despite unresolved issues, both sides committed to diplomatic dialogue and agreed to continue a provisional understanding on Philippine Armed Forces rotations in Ayungin Shoal.
Read more »
Philippines Demands China Withdraw 'Monster Ship' From Philippine WatersThe Philippine government has called on China to withdraw its massive Coast Guard vessel, known as the 'monster ship', from Philippine waters. The presence of the vessel, identified as the China Coast Guard (CCG) 5901, has raised alarm in the Philippines, prompting a diplomatic protest and the deployment of Philippine Coast Guard vessels to monitor the situation. While tensions remain high, the Philippine government insists on using diplomatic channels to resolve the issue.
Read more »
Philippine Women's Futsal Team Draws With Uzbekistan in AFC Asian Cup QualifiersThe Philippine women's futsal team showcased their resilience, battling to a 3-3 draw against Uzbekistan in their second match of the AFC Futsal Women's Asian Cup qualifiers. Despite a spirited performance, the Philippines were unable to secure a win against the home team.
Read more »