Future Growth Of Volatile Cocoa & Coffee Rests In Emerging Markets

December 08, 2014

These two commodities exemplify how prices react to nature and circumstances.

 

Both cocoa and coffee have seen significant price increases this year, and readjustment as the year enters its last quarter. What has been going on?

Cocoa And The Scylla Of Ebola

Both cocoa and coffee share the distinction that, for each, there is a small core of major producing nations, with the others being essentially “also-rans.” In the case of cocoa, the vast majority of the world’s production is concentrated in West Africa. The rest is produced in South America, Asia and Oceania.

 

Production

Global Coffee Bean Production – 2012/13

Source: International Cocoa Organization

 

Cocoa Bean Production – Africa ('000 Tonnes)

Source: International Cocoa Organization

 

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