INSUBCONTINENT EXCLUSIVE:
on Wednesday morning, following disappointing harvests in key cocoa-producing countries such as Ghana and Ivory Coast
Cameroon, another cocoa-producing nation, has also been seeing much of the same conditions.The crop also saw a 19.8% gain in the past week,
as well as a 42.4% rise this month
In the past year, cocoa prices have jumped about 231%.Cocoa is widely used in a number of chocolate products and confectioneries, with
by-products such as cocoa nibs, cocoa butter, cocoa pod husks and pulp also being used for soft drinks, alcohol, vinegar, cosmetics, health
supplements, fragrances and more.However, due to chocolate being by far the most common cocoa product, the rising cocoa prices have led to
more worries about higher chocolate prices, as well as a chocolate shortage.Why are cocoa prices rising?Cocoa prices have been rapidly
increasing for the last few months due to worse-than-expected harvests from in Western African countries such as Ghana and Ivory Coast,
squeezing cocoa supplies worldwide.This is mainly due to the weather phenomenon El Nino, which caused unseasonably heavy rainfall in
December last year, resulting in black pod disease widely damaging crops
A combination of climate change and the continuation of El Nino also led to extreme heat in the following months, further disrupting
Since cocoa is an especially drought-sensitive crop, this harsher, dryer weather can be particularly debilitating for harvests.Ageing cocoa
trees also contributed to lower harvests, as they are more susceptible to disease
This also means that they are more expensive to maintain, with several farmers choosing to abandon old cocoa trees and farms, for greener
pastures.Illegal mining in West African regions has also increased drastically, due to the rich deposits of metals and minerals such as
gold, uranium, iron ore and diamonds, amongst others
This has led to a massive loss of arable land, due to deforestation, as well as declining water body quality.Rising cocoa prices do not seem
to be translating into gains for cocoa farmers, who are still struggling considerably with increased production costs and reduced crop
As such, several farmers have also chosen to sell their cocoa farms and lands to mining companies.What does this mean for chocolate
manufacturers?Several cocoa plants in Ghana and Ivory Coast have reportedly decreased or stopped cocoa processing activities due to the
mid-crop, starting in April to drop approximately 33% to about 400,000 metric tons
15% in 2023, and has indicated that it is likely to continue doing so to achieve its revenue forecasts for this year
likely to bring a silver lining for chocolate makersUpcoming Easter chocolate sales are likely to ease chocolate maker concerns for the
short-term at least, with several manufacturers already having raised the prices of Easter eggs and bunnies.Consumer services and research
company which revealed that brands such as Toblerone and Lindt have already hiked prices for their popular chocolate bunnies and eggs by
about 50%, compared to 2023
The sizes of several sweet treats have also decreased, as manufacturers continue to find ways to cut corners.Several manufacturers, such as
Hersheys, are also pushing the sales of non-cocoa products, such as their cookies and cream range, as well as gummy bears and other candy,
to make up for the higher chocolate prices.However, this year, consumers may very well also be a little more cautious when it comes to
holiday and non-essential spending, due to the ongoing cost of living crisis
This may potentially put a cap on Easter sales, as consumers shop more mindfully and hunt for better bargains.Source: Euro News--Agencies
