cocoa prices at their highest

Monday 26th June 2023 03:15 PM

On June 26, 2023, by Olivier Sancerre

Chocolate lovers will face an impending price hike due to rising cocoa costs. A phenomenon attributed to a lack of cocoa stocks and the effects of the El Nino weather phenomenon.

Cocoa, a market in tension

Over the past year, the price of chocolate has risen 14% according to data from consumer intelligence database NielsenIQ. Observers predict a further increase due to the strain on the supply of cocoa, a major ingredient in the candy. According to Sergey Chetvertakov, analyst at S&P Global Commodity Insights, “ the cocoa market has seen a remarkable rise in prices… This season marks the second consecutive deficit, with cocoa stocks expected to reach abnormally low levels “. The price of cocoa jumped to $3,171 a ton, the highest since May 5, 2016.

The arrival of the El Nino weather phenomenon, characterized by unusual heat and dryness in the central and eastern tropical Pacific, is forecast to bring less than average rain and strong Harmattan winds to West Africa, where cocoa is widely grown. Côte d’Ivoire and Ghana account for more than 60% of world cocoa production.

Consumers will pay more for chocolate

Chetvertakov predicts that the cocoa market could be affected by another deficit next season, which runs from October to September the following year. This means that cocoa prices could rise to $3,600 per tonne. Consumers should prepare for a likely rise in chocolate prices as producers are forced to pass on rising production costs to consumers.

Another main chocolate ingredient, cocoa butter, also saw a price increase of 20.5% in one year, according to the Mintec food price database. Finally, sugar, another essential ingredient in chocolate, hit an 11-year high in April. The price of dark chocolate will probably be the most affected because it contains more cocoa compared to white chocolate and milk chocolate.