Average DIS price for November was K6, 621/tonne compared to K7, 250/tonne in the previous month (October 2016). This was 9.5% lower than the previous month. Cocoa prices are collected on a daily basis from exporters around the country.
|Month||Average Price||Price per bag(kina/bag)||% change|
Cocoa prices are still declining since September. The cocoa price has fallen 14% over the past two months following an abundant supply of the “Main-Crop” in West Africa caused by favourable weather conditions. As of 30th of November, cocoa was trading at US$2,375/tonne which is a decrease of 22% from its highest peak price in early September (US$2,905). Other factors causing the decreasing in price includes the strengthening of the US Dollar and the weaker demand coming from Europe the biggest consumer of chocolate in the world.
Cocoa price dropping internationally is mirrored on the domestic market. Domestically apart from the global factors, currency fluctuations were also a major cause for the low prices over this period. The exchange rate, the US Dollar had been stronger against the kina casting a minimal effect on the price of cocoa for farmers who were on the receiving hand with slight drop in cocoa prices.
Submitted for your information only.