- The cost of cocoa has reached an all-time high of almost $6,000 per metric ton.
- Price increases have become a concern for consumers and companies
<!–
<!–
<!– <!–
<!–
<!–
<!–
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 an all-time high this month, which had a significant impact on the price of chocolate in stores.
Rising costs have become a concern for consumers facing rising prices and for chocolate companies that have suffered a massive drop in profits year on year.
There are multiple factors that influence how the price of cocoa can increase rapidly in a short period of time.
Cocoa prices have increased since late 2022 and reached an all-time high of nearly $6,000 per metric ton in February 2024.
Multiple factors such as weather, disease, and government influence the reasons behind the rise in cocoa price.
Hershey’s year-over-year profits have been declining each year, and the company suffered an 11.5 percent profit drop during the fourth quarter of last year.
Hershey’s also announced it would cut 5 percent of its workforce.
However, the company expects to see a Growth of 2 to 3 percent in net sales at the end of this year.
Barry Callebaut, the world’s largest chocolate maker, said it would lay off 18 percent of its workforce, or about 2,500 workers.
Cadbury confirmed in December 2023 that some of its Roses packaging would not contain orange candy due to supply shortages around Christmas.
“This year, a small percentage of Cadbury Roses products will not contain Orange Cremes due to supply chain issues,” a Cadbury spokesperson said last December.
“But don’t worry, you’ll still be able to enjoy the same amount of chocolate as always, as we’ve replaced them with our beloved strawberry creams.”
Barry Callebaut, the world’s largest chocolate manufacturer, even had to lay off 2,500 people. Year-on-year profits have been declining, with its year-on-year profits falling 11.5 percent last quarter.
The increase can be attributed in part to weather conditions in areas where cocoa is grown.
For example, El Niño weather patterns have caused extremely high temperatures, rainfall and droughts since 2023 that have affected production.
The weather brought dry temperatures to West Africa, where three-quarters of the world’s supply of cocoa beans is grown.
CNBC reported in October that El Niño is expected to last until March 2024 and may “reduce the amount of arable land for cocoa cultivation.”
Ghana and Ivory Coast, two of the largest cocoa-producing countries, have been heavily affected by weather patterns for reasons other than crop destruction.
El Niño weather patterns have caused extremely high temperatures, rainfall and droughts since 2023 that have affected cocoa production.
Black pod disease and cocoa swollen bud virus spread across Ghana and Ivory Coast last year during heavy rains.
Black pod disease and cocoa swollen bud virus spread across Ghana and Ivory Coast last year during heavy rains.
Black pod disease is a fungal disease that can infect the stems and roots of cocoa trees.
The disease pathogen can cause up to 10 percent of cocoa tree loss in Ghana and has posed a significant threat to the sustainability of the country’s cocoa industry.
Cocoa swollen bud virus is as harmful as black pod disease because it primarily infects cocoa trees.
According to Tropical Research Services, swollen bud virus infected about 20 percent of cocoa trees in Côte d’Ivoire last year.
Government officials in Ghana and Ivory Coast are responsible for setting prices for farmers working in cocoa production.