Is CHOCOLATE getting more expensive than ever? Here’s why your favorite treat might be hit by inflation
- The cost of cocoa is reaching a record high of almost $6,000 per tonne
- The price increase has become a concern for consumers and businesses
Chocolate lovers should be prepared to pay more than ever for their favorite treat.
Cocoa prices have been rising since the end of 2022 and reached a record high this month, which has a significant impact on the price of chocolate in stores.
The cost increase has become a concern for consumers dealing with rising prices and for chocolate companies that have suffered a huge drop in year-over-year profits.
There are several factors that determine how the price of cocoa can rise quickly in a short time.
Cocoa prices have been rising since late 2022, reaching a record high of almost $6,000 per tonne in February 2024.
Several factors, such as weather, illness and government, play a role in the reasons behind the price increase of cocoa
Year-over-year profits at Hershey’s have fallen every year, with the company experiencing an 11.5 percent profit decline in the fourth quarter of last year.
Hershey’s also announced it would cut 5 percent of its workforce.
However, the company does expect one A growth of 2 to 3 percent in net sales later this year.
Barry Callebaut, the world’s largest chocolate manufacturer, said it would lay off 18 percent of its workforce, amounting to about 2,500 employees.
Cadbury confirmed in December 2023 that some of their Roses tubs would not contain orange candies due to a supply shortage around Christmas.
“This year, a small percentage of Cadbury Roses products will not contain Orange Cremes due to supply chain challenges,” a Cadbury spokesperson said last December.
‘But don’t worry, you can still enjoy the same amount of chocolate as usual as we’ve replaced them with our beloved Strawberry Cremes.’
Barry Callebaut, the largest chocolate manufacturer in the world, even had to lay off 2,500 people. Year-over-year profits are down, and year-over-year profits fell 11.5 percent last quarter
The increase can be partly attributed to weather conditions in areas where cocoa is grown.
For example, El Nino weather patterns have led to extremely high temperatures, rainfall and drought since 2023, which has affected production.
The weather caused dry temperatures in West Africa, where three-quarters of the world’s cocoa bean supply is grown.
CNBC reported in October that the El Nino is expected to last until March 2024 and that it “could reduce the amount of arable land for cocoa cultivation.”
Ghana and Ivory Coast, two of the largest cocoa-producing provinces, have been strongly affected by weather patterns for reasons other than crop destruction.
El Nino weather patterns have led to extremely high temperatures, rainfall and drought since 2023, affecting cocoa production
Black pod disease and cocoa swollen shoot virus spread across Ghana and Ivory Coast during heavy rains last year
Black pod disease and cocoa swollen shoot virus spread across Ghana and Ivory Coast during heavy rains last year.
Black pod disease is a fungal disease that can infect the stems and roots of cacao trees.
The pathogen can… 10 percent of cocoa tree loss in Ghana and poses a significant threat to the sustainability of the country’s cocoa industry.
Cocoa swollen shoot virus is as harmful as black pod disease because it mainly infects cocoa trees.
According to Tropical Research Services, the swollen shoot virus infected about 20 percent of cocoa trees in Ivory Coast last year.
Government officials in Ghana and Ivory Coast are responsible for setting prices for farmers engaged in cocoa production.