Faced with a spectacular rise in cocoa prices, some countries producing the precious brown grain give the impression of fully seizing their opportunity.
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A favorable situation for Cameroon and Nigeria
The sudden withdrawal of cocoa industry giants Ivory Coast and Ghana from the front lines of the market due to poor harvests has allowed other African nations, particularly Nigeria and Cameroon, to recover a large share of the cocoa market. Farmers in these countries find particular satisfaction in the increase in cocoa prices which has directly benefited them.
In Cameroon, the third African producer, a kilo of cocoa sells for more than 5,100 CFA francs – or more than 8 dollars. The economic system of this country offers its farmers direct interaction with the market, a liberalized experience that is not aside in most cocoa-producing countries. It allows producers not only to monitor market fluctuations but also to take full advantage of high rates.
Rising cocoa prices also benefit the Democratic Republic of Congo
Meanwhile, in the Democratic Republic of Congo (DRC), an emerging but powerful player in the cocoa industry, many eager cocoa buyers are flocking like moths toward the light. The DRC, despite its recent entry into the global cocoa market, has managed to attract the attention of buyers thanks to the superior quality of its cocoa products.
Séraphine Ntoumba, who supports DRC cocoa producers, said at the world cocoa conference in Brussels: “More and more, there are buyers who were not present in the DRC but who are starting to come.” . She adds that last year, the kilo of cocoa brought Congolese producers only 2.5 dollars maximum but this year, it has more than doubled.
A brief analysis of Nigeria’s performance
As for Nigeria, Africa’s fourth largest cocoa producer, it has been massively courted in recent months. Traders Olam and Sunbeth, among others, are lagging behind to get their hands on additional beans, which is a testimony to its growing reputation as a leading cocoa producer.
In conclusion, while some are worried about the surge in cocoa prices, others see it as a great opportunity. This dynamic cycle is the beauty of the global market; when the situation seems difficult for some, it also provides a glimmer of hope for others. The question then arises: how will these countries manage to maintain their optimal performance in such a volatile market? And is the surge in cocoa prices a lasting advantage for these countries?
