Average DIS price for January was K5, 413/tonne compared to K5, 897/tonne in the previous month (December 2016). This was 8.9% lower than the previous month. Prices collected on a daily basis from exporters around the country averaged as follow:
|Month||Average Price||Price per bag(kina/bag)||% change|
The cocoa price has fallen 20% since September of 2016. The past five months has seen a drop in prices due to the strong pace of port arrivals in top producer Ivory Coast added to already ample supplies with a global surplus widely forecast for the current 2016/17 season. Cocoa beans are piling up at warehouses and ports as exporters who put in bids for the commodity at high prices are now stuck with stock they are unwilling to sell at a loss.
Moreover adding to the abundant supply demand fundamentals were also poor and weak due to health consciousness of consumers. The world market remains well – supplied while demand has stagnated in the US as the world largest chocolate market. China also experienced a fall in demand. Cocoa prices should regain and pick up again towards the middle of the calendar year 2017.
Cocoa price dropping internationally is mirrored on the domestic market. Cocoa price for this month has fallen by 9% due to factors on the international market; the global market is oversupplied and the weak demand. Our cocoa farmers have been on the receiving hand with low cocoa prices for their cocoa bags.
Submitted for your information only.