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S.American cocoa output seen hitting record high of 1.1

mln T

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Ecuador leads with high-yielding cocoa plantations

replacing

banana, palm trees

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Ecuador expected to surpass Ghana as world's No. 2 cocoa

producer in 4 years

By Naveen Thukral

SINGAPORE, Sept 13 (Reuters) - A rally in global cocoa

prices to a record high is driving rapid expansion in plantation

of the chocolate-making ingredient across South America, with

production likely to climb to an all-time high in the coming

year, a senior trader said on Friday.

Global cocoa prices roughly tripled this year to an

all-time high by April after adverse weather, bean disease,

smuggling and reduced plantations in favour of illegal gold

mining cut production in top producers Ivory Coast and Ghana.

But output in South American cocoa producing countries, led

by Ecuador, is estimated to climb to an all-time high of 1.1

million metric tons in the year to September 2025, said Alberto

Nacer, vice president, softs commodities at broker StoneX ( SNEX )

.

Farmers in Ecuador, which is Latin America's biggest cocoa

producer, are replacing banana and palm trees with new

high-yielding cocoa plantations, he told Reuters on the

sidelines of an industry conference in Singapore.

"You have high yielding trees and if you have proper farms,

meaning you have planted your trees at the correct density...

applying good fertilizers... irrigating and pruning regularly."

"If you have all these conditions, you're going to have a

cocoa farm that is going to produce 2,000 kilos/year, per

hectare."

He said this compared with 350 kgs per year from some

smaller and older plantations.

The cocoa market is facing a third successive year of

deficit, with lower output in Ivory Coast and Ghana, which

account for more than 60% of the world supply.

The global cocoa stocks-to-grinding ratio has dropped to its

lowest in almost 50 years amid a steep decline in output.

Cocoa Prices have eased from record highs of around

$11,700 per ton in April, but are still up 70% this year.

"Cocoa plantations that maybe give around 350 kgs per

hectare, which is very low, are being taken down to plant the

newer varieties," Nacer said.

Other cocoa producers in South America include Brazil, Peru

Colombia and Dominican Republic.

Cocoa output in Ecuador, which has emerged as the world's

third-largest cocoa producer, is expected to rise to 500,000

tons in the year starting October, from an estimated 430,000

tons produced this year, he said.

Nacer said Ecuador is likely to take over Ghana as the world

No. 2 cocoa producer.

"I would say, without any doubt, that it's going to happen

in no more than 4 years. It might happen earlier, but no more

than 4 years."