Cocoa prices soar to record high amid West Africa weather woes, hinting at future chocolate hike
In March, cocoa futures contracts rose to nearly £4,305 per metric ton. Since the start of the year, prices have surged by over 43 percent.
Severe weather conditions in West Africa, which is responsible for three-quarters of the world's cocoa production, have been highlighted by CNBC. The culprit is the El Niño weather event, leading to drought in Ghana and the Ivory Coast, the two prime cocoa bean producers.
Worsening tree diseases, more severe than in previous years, are also contributing to industry woes. Control measures involve cutting and replanting trees, which considerably complicates harvesting processes.
By how much will chocolate prices rise?
Experts consulted by Reuters anticipate that, in the 2023-2024 season, the global cocoa bean shortage will reach 374,213 metric tons - over double the quantity predicted in August.
The growing cost of raw materials will majorly affect consumers, including chocolate enthusiasts. Manufacturers have largely exhausted supplies of low-cost beans. The American company, The Hershey Company, foresees declining profits and doesn't dismiss the possibility of price hikes. Conversely, Russian companies anticipate a 15-20 percent increase in chocolate prices in 2024.
