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Cocoa Puffs

The global cocoa price hit $10,120/MT yesterday, triple its price last fall, and it is still unlikely to be at its apex. The cause is a sharp drop-off in production in Ghana and Côte d’Ivoire, the two countries that produce nearly 65 percent of the world’s cocoa beans. Some have tried to blame climate change for the shortfall, but Steve Wateridge of Tropical Research Services rejects this assertion. He says El Nino may have reduced the Ecuadorean crop but problems with the critical crop in West Africa is rooted in management issues:

Government run boards forward sell the supply and they did not anticipate the smaller crop and underpriced it.  The farmer has been receiving too little money for the crop, so they lac...

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From WPI Consulting

Infrastructure investment due diligence

On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.

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