Global cocoa production has seen a significant decline of approximately 11%, causing a substantial rise in cocoa prices worldwide. This drop in production, attributed to factors such as climate change, El Nino's impact, and a viral disease affecting cocoa roots, has led to the near quintupling of wet cocoa bean prices and a tripling of dry cocoa bean prices year-on-year. Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd responded by increasing its purchase price to ₹255 per kg for wet cocoa beans and ₹825 per kg for dry beans, compared to the much lower prices of ₹55 and ₹220 respectively in the previous year.
Campco's aggressive market strategy has been to offer competitive prices to farmers, reflecting the global price trend. As of three weeks ago, the cooperative was purchasing wet cocoa beans at ₹160-175 per kg and dry beans at ₹600 per kg, but these rates have since increased due to the continuing global shortage. Campco's approach aims to support farmers in major cocoa-growing regions of Karnataka and Kerala, adjusting procurement prices in response to the international market dynamics.
The decrease in global cocoa output and the consequent price hike in the commodity market have underscored the challenges faced by the cocoa industry, including the effects of climate variability and diseases. The conversion rate of wet to dry cocoa beans varies, with yields typically ranging from 280 to 320 grams of dry beans per kilogram of wet beans, further influenced by seasonal changes like the rainy season, which can affect the yield.