Cocoa shortage news seems to be going viral when the fact of the matter is that cocoa prices will structurally decline in the coming years due the modernization of an industry that's been marginalized for more than 20 years. The Ivory Coast which, is the number grower in the world is undergoing full on paradigm shift due to President Allasane Outtara.
As we said last year, "President Ouattara, who was educated here in the U.S. at Drexel University, is quickly modernizing the Ivory Coast’s cocoa markets. There’s been rapid development in soil reclamation, fertilization and education. Most cocoa is grown by individual farmers on small plots of land and is harvested by hand as it has been for hundreds of years. The application of modern agronomy techniques will cause the Ivory Coast’s cocoa production to increase rapidly over the coming years. The combination of infrastructure improvement and political stability supporting free trade and as well as modern farming practices will increase yield and depress prices once the changes are fully implemented."
Read more - Paradigm shift in the Cocoa Futures Market.
See our past cocoa futures articles.
Read the rest of today's piece, Cocoa Fear are Overblown at Equities.com
