Earlier this year Euronews reported a new all time high for the cost of cocoas, reaching $10,000 per ton. For close to a decade up to 2023, global cocoa prices hovered at around $2,500-$3,000 per tonne (€2,300-€2,760) so it is clear to see the dramatic rise in prices currently.
This steep rise in costs was put down to a number of harvest issues affecting the most popular cocoas producing countries in the world, mainly based out of West Africa.
Ghana, Ivory Coast and Cameroon were all negatively impacted by the weather phenomenon known as El Nino, resulting in severe rainfall and leading to mass disruption to the cocoa harvests. However, this is not an isolated event. Climate change, aging plantations and a change in workforce habits are putting the resilience of cocoa farmers’ at risk.
What was once a delicacy reserved for royals has reached into the hearts of homes across the world. It would be hard to imagine our lives without it and yet today the crisis looms large.
https://www.icco.org/statistics/
Forecasting the Future of Cocoa
Now that the expected losses in production and soaring costs have come to fruition it is time to take a closer look at potential solutions to the cocoa crisis. The economic reality for cocoa farmers isn’t looking too fruitful. Many cannot afford to invest in their farms to increase yields or enhance resilience against climate change.
Additionally, the average cocoa farmer in Ghana is approaching 50, and the younger generation is showing little interest in continuing the trade. So how can Blockchain technology assert some power back into the hands of the farmers and the industries that need them most?
By capturing detailed information on weather patterns, soil conditions, and crop health directly from farms, blockchain can offer a comprehensive and accurate view of factors affecting cocoa production.
“Blockchain data, combined with machine learning algorithms, can enhance efficiencies in production, allowing stakeholders to anticipate and respond to environmental and market changes more swiftly,” says Dan Weinberger, Co-Founder and CEO of Morpheus Network.
Expanding on their vision for a world where supply chain tracking can provide greater collaboration between all stakeholders COO Noam Eppel notes,
Cocoa trees are becoming more and more difficult to cultivate due to weather extremes. Climate change has led to reduced yield and excessive rain has brought diseases to the plants. As a result, global cocoa production is expected to drop by nearly 11 percent this year.
Exploring all causes, threats and solutions
In order to tackle the issue from the outset it is crucial that we gather as much real-time data as possible. It is also important to evaluate existing adaptation measures such as substituting cocoa with other ingredients or blending beans that impacts the overall flavor and quality of the products.
By tracking each stage of production, blockchain and artificial intelligence can help mitigate some of the economic pressures on farmers. This will improve overall supply chain efficiency and also highlight gaps in production processes that could lead to new opportunities to incentivize the cocoa farmers that we have come to rely on for this precious food source.
Moreover, it can also facilitate better decision-making in the face of climate change. Real-time data on weather patterns, crop health, and market conditions can be shared across the supply chain, allowing for more agile and informed responses to environmental challenges.
Most consumers will treat themselves to something sweet at some point during the week. Maybe you are craving a snickers bar or perhaps a mouthwatering brownie with a side of ice-cream.
The road of cocoa plantation is a rocky one with ongoing challenges that need to be addressed imminently. However, using blockchain technology can help us to pave the way for better infrastructure and understanding of the challenges faced by the chocolate industry.
