On Monday, the futures price per ton of cocoa reached $3,786. This is the highest level since 1979 and is due to warmer, drier weather conditions inhibiting crop growth. As CNBC points out, this is partly due to the El Niño weather phenomenon, which is estimated to last until the first half of 2024.
Cocoa, the basic ingredient in chocolate, is at its most expensive in more than four decades as warmer, drier weather hampers the growth of cocoa bean crops. On Monday, the price per tonne of this raw material on the futures contract reached USD 3,786 per tonne (almost PLN 16,000). This is the highest level since 1979.
The price peak comes as producers struggle with a warmer season and less rainfall, especially in West Africa, where most of the world’s cocoa comes from. According to David Branch, an analyst at the Wells Fargo Agri-Food Institute, Ivory Coast, GhanaCameroon and Nigeria they account for almost 75 percent of the world’s cocoa bean harvest.
Cacao is an unstable plant and typically grows in constant temperatures, high humidity, abundant rain, nitrogen-rich soil and shelter from the wind, Branch said. There have not been many such weather conditions this season, which has disrupted the cocoa harvest.
“There’s not a lot of room for error, which makes cocoa particularly vulnerable to climate change,” Branch said.
The heat and drought threatening major cocoa-growing regions are partly the result of El Niño – a naturally occurring weather phenomenon that is estimated to last until the first half of 2024. As CNBC reminds us, this is the second season in a row of cocoa deficit.
Americans will spend more on Halloween
Combined with pressure on the sugar market, cocoa shortages have spooked major chocolate producers USAwhich resulted in an increase in candy prices during Halloween.
According to the latest consumer price index, the price of sweets in September was 7.5 percent higher. higher than a year ago. A 2023 study by the National Retail Federation found that consumers are likely to spend $3.6 billion on candy this Halloween, up from $3.1 billion in 2022.
Candy manufacturer Mars told CNBC in a statement that “like many industries, we continue to struggle with high inflation and spikes in material costs; however, we are working to cover these additional costs whenever possible to provide affordable treats and the best quality. We have not launched since June no price increases and they were appropriate to the category.
Main photo source: Shutterstock