What's New

Cocoa bean prices have been rising since the last quarter of 2023, hitting a record high of $10.97 per kilogram on April 19 (Figure 1). The price spike is due to a significant drop in bean production by major global suppliers—four key producing nations in West and Central Africa account for more than 60% of the world's supply of cocoa beans: Cote d’Ivoire (with 38% of the global production in 2022), Ghana (19%), Nigeria (5%), and Cameroon (5%).1

Hunger continues to rise across the globe, with nearly 282 million people facing acute food insecurity in 2023, according to the 2024 Global Report on Food Crises (GRFC).  This number is up by 24 million from 2022, marking the fifth consecutive year that food insecurity has risen.

Russia’s invasion of Ukraine in February 2022 sent a shock through global fertilizer markets. All agricultural trade in the region was disrupted for a time, and a number of countries imposed economic sanctions on major fertilizer producers Russia and its ally Belarus (the latter already targeted pre-invasion by European Union fertilizer export sanctions). Prices spiked, resulting in fears of widespread impacts on agricultural production. Since then, fertilizer prices have fallen from those initial highs and new trade routes and patterns have emerged.

The war in Ukraine continues to disrupt the country’s agrifood sector, posing an ongoing threat to food security. Damage to critical infrastructure is hindering agricultural activity and the transportation of essential food to local markets and to export destinations. This situation, together with destroyed livelihoods and high inflation, is hampering access to food for millions of Ukrainians.

More than 7 million Ukrainians face acute food insecurity

Cocoa bean prices have climbed to record nominal levels over the past six months, more than doubling since August 2023 (Figure 1). This price spike has largely been driven by weather-related diseases that have reduced cocoa production in key West African countries accounting for almost three quarters of world supplies.