Post by account_disabled on Mar 14, 2024 1:32:06 GMT -5
El Nino is here to stay — and that’s bad news for cocoa crops which are highly sensitive to weather changes. Frequent extreme weather events caused by El Nino and climate change hurts cocoa production. Hotter temperatures and shifts in rainfall patterns can also damage cocoa pod development and promote the spread of pests and diseases. According to the the latest El Nino-Southern Oscillation Outlook, El Nino is expected to last through January to March 2024, with a 71% chance it will intensify from November to January. An intensified and frequent El Nino effect could significantly reduce the amount of arable land for cocoa cultivation. This not only poses a threat to food security, but also endangers the livelihoods of farmers, especially those in West African countries, which are most at risk from extreme weather changes. “El Nino conditions are often historically associated with drier conditions in West Africa where three-quarters of the world’s cocoa is produced,” Jonathan Haines, research director at Gro Intelligence told CNBC. Top cocoa producers Cocoa comes from the seed of the cacao tree and is an essential ingredient for chocolates. But it’s not only used in food and confectionery. Cocoa butter — a byproduct of cocoa processing — is also widely used in the pharmaceutical industry for skincare products and cosmetics.
Cocoa farmers facing critical decisions may start looking to higher-altitude regions where the weather is more favorable for cocoa cultivation... Kerry Daroci RAINFOREST ALLIANCE Africa accounts for nearly 75% of global cocoa production, while the Americas — including Brazil and Ecuador — make up 20%, according to the International Cocoa Organization. Asia-Pacific produces the remaining 5%, with Indonesia and Papua New Guinea being the largest producers in the region. West Africa’s Cote d’Ivoire — or the Ivory Coast — is the world’s largest cocoa producer, accounting for about 44% of global production, while neighboring Ghana accounts for about 14%. Cost of climate change As temperatures soar, more and more suitable cacao cultivation areas will be pushed uphill BYB Directory by 2050, according to Climate.gov, a climate change science and information portal run by the National Oceanic and Atmospheric Administration. With the optimal altitude for cacao cultivation expected to rise, cocoa farmers may be forced to move harvests to higher ground. “Cocoa farmers facing critical decisions may start looking to higher-altitude regions where the weather is more favorable for cocoa cultivation, or some may decide to leave cocoa cultivation altogether,” Kerry Daroci, the cocoa sector lead at the Rainforest Alliance, told CNBC.
The financial damage of climate change can be extremely costly, especially since top cocoa-producers like Ivory Coast, Ghana and Indonesia, are vulnerable to extreme weather conditions. Why soft commodities prices are risingWATCH NOW VIDEO03:10 Why soft commodities prices are rising According to a report by the Economist Intelligence Unit, a high intensity El Nino may result in severe economic disruption across Africa. Businesses in the agricultural sector are also at risk from an increase in farm input prices that can drive up overhead costs. The financial cost of El Nino and climate change remains unquantified for Cote d’Ivoire and Ghana. However, as profits from cocoa make up 70% to 100% of Ghanaian cocoa producers’ income, any decline in yields will have a substantial impact on their livelihoods, said Daroci from the Rainforest Alliance. West African producers aren’t the only ones impacted. “In Indonesia, climate change is reducing productivity by approximately 50%, leading to an estimated loss of $666 per hectare, affecting up to one million hectares,” Daroci added. We have reached a juncture in the climate crisis where harm reduction is no longer enough. Kerry Daroci RAINFOREST ALLIANCE As it stands, cocoa prices have already surged to “high premiums,” according to the International Cocoa Organization.
Cocoa farmers facing critical decisions may start looking to higher-altitude regions where the weather is more favorable for cocoa cultivation... Kerry Daroci RAINFOREST ALLIANCE Africa accounts for nearly 75% of global cocoa production, while the Americas — including Brazil and Ecuador — make up 20%, according to the International Cocoa Organization. Asia-Pacific produces the remaining 5%, with Indonesia and Papua New Guinea being the largest producers in the region. West Africa’s Cote d’Ivoire — or the Ivory Coast — is the world’s largest cocoa producer, accounting for about 44% of global production, while neighboring Ghana accounts for about 14%. Cost of climate change As temperatures soar, more and more suitable cacao cultivation areas will be pushed uphill BYB Directory by 2050, according to Climate.gov, a climate change science and information portal run by the National Oceanic and Atmospheric Administration. With the optimal altitude for cacao cultivation expected to rise, cocoa farmers may be forced to move harvests to higher ground. “Cocoa farmers facing critical decisions may start looking to higher-altitude regions where the weather is more favorable for cocoa cultivation, or some may decide to leave cocoa cultivation altogether,” Kerry Daroci, the cocoa sector lead at the Rainforest Alliance, told CNBC.
The financial damage of climate change can be extremely costly, especially since top cocoa-producers like Ivory Coast, Ghana and Indonesia, are vulnerable to extreme weather conditions. Why soft commodities prices are risingWATCH NOW VIDEO03:10 Why soft commodities prices are rising According to a report by the Economist Intelligence Unit, a high intensity El Nino may result in severe economic disruption across Africa. Businesses in the agricultural sector are also at risk from an increase in farm input prices that can drive up overhead costs. The financial cost of El Nino and climate change remains unquantified for Cote d’Ivoire and Ghana. However, as profits from cocoa make up 70% to 100% of Ghanaian cocoa producers’ income, any decline in yields will have a substantial impact on their livelihoods, said Daroci from the Rainforest Alliance. West African producers aren’t the only ones impacted. “In Indonesia, climate change is reducing productivity by approximately 50%, leading to an estimated loss of $666 per hectare, affecting up to one million hectares,” Daroci added. We have reached a juncture in the climate crisis where harm reduction is no longer enough. Kerry Daroci RAINFOREST ALLIANCE As it stands, cocoa prices have already surged to “high premiums,” according to the International Cocoa Organization.