Context: Prices of Cocoa reached $5,000, which is a major concern for the Chocolate makers. Increase in prices of cocoa have compounded chocolate producers’ concerns as the sugar and energy prices are rising as well.
More about the news:
- The Food and Agriculture Organisation’s Sugar Price Index was at 26.7%, higher than 2022 and 60% above its pre-pandemic average (2015-2019).
- Supply side constraints:
- As per the reports of Tropical Research Services, Ivory Coast and Ghana are facing structural barriers in production of Cocoa.
- Black pod disease, swollen short virus due to excess rainfall and an ageing tree stock (Cacao tree) are affecting the production.
- The Cocoa market is expected to remain volatile with the likely continuation of EL-Nino, which will bring below average rainfall in West Africa.
- Erratic rainfall patterns and increased temperatures in West Africa have caused moisture stress and inhibited the growth of cocoa flowers and pods.
- Prices of Sugar have been volatile and have gained 12% year-on-year, mainly due to lower production in India.
Cocoa Production:
- Cacao tree is a small (4-8 m height) evergreen tree and is found in tropical regions. The major region is the Cocoa belt, an area of land around the equator between 20 degrees latitude north and south. The tree can be grown up to 300 m above mean sea level.
- Cocoa bean is the dried and fully fermented seed of Theobroma cacao from which cocoa solids (a mixture of nonfat substances) and cocoa butter (fat) can be extracted.
- Cocoa is a native plant of the Amazon rainforest.
Conditions are necessary for Cacoa tree:
- Humid Climate with uniform heat:
- Requires a minimum of 90-100 mm rainfall per month with an annual rainfall of 1500-2000 mm.
- If dry periods are prolonged, irrigation scheduling is necessary.
- Temperature range of 15°-39°C with optimum of 25°C is considered ideal.
- Shade:
- Cocoa was evolved as an under-storey crop in the Amazonian forests.
- Requires much heat but direct sunlight is harmful.
- Commercial cultivation of cocoa can be taken up in plantations where 50 percent of light is ideally available.
- Under Arecanut 30-50% of sunlight penetrates through their canopy which can be intercepted by cocoa.
- Soil:
- Fairly loose, deep, well drained, clayey and sandy loam soils are suitable.
- Rich in nitrogen, iron and potassium.
- Grows well in the pH range of 6.5 to 7.0.
- Heaviest crops come from cocoa grown on newly cleared virgin equatorial forest soils with high humus content.
- Manuring in long-established groves enhances the yields.
- Protection from strong winds:
- Strong winds are harmful as they often blow off unripe pods.
- Hurricanes do great damage to the cocoa trees in the West Indies and Central America.
- Harvesting:
- Harvested after 5 years, when the pods change colour, i.e. turn yellow or red.
- Thousands of flowers produce only a few pods (about 80 per year), inside which are beans are surrounded by mucilage, a sweet, white pulp.
- November-March and May-July are best times to ripen the pods.
Major producing regions:
- More than 70 percent of the world’s cocoa beans come from four West African countries: Ivory Coast, Ghana, Nigeria and Cameroon.
- The Ivory Coast and Ghana are by far the two largest producers of cocoa, accounting for more than 50 percent of the world's cocoa.
- In 2021, the Ivory Coast alone produced approximately 2.1 million metric tons of cocoa beans.
- Central and South America, southeastern Asia and the Caribbean account for the other 25 percent.
- In India, Cocoa is being cultivated in the States of Kerala, Karnataka, Andhra Pradesh and Tamil Nadu in an area of 1,03,376 ha with total production of 27,072 MT.
- Most of the Cocoa cultivation in India happens in Andhra Pradesh and Kerala accounting for nearly 80% of the total produce.
- Andhra Pradesh ranks first in area with 39,714 ha and production of 10,903 MT.
- The highest productivity is also in Andhra Pradesh which is 950 kg/ha.
- In India, it is mainly cultivated as intercrop with Arecanut and Coconut.