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Chocolate lovers are in for a shock in this Easter as the prices move North. Experts blame changing climate patterns for the mismatch between demand and supply of cocoa beans.
Chocolate lovers are in for a shock in this Easter as the prices move North. Experts blame changing climate patterns for the mismatch between demand and supply of cocoa beans.
About three-quarters of the world’s cocoa is grown in Ghana, Ivory Coast, Nigeria, and Cameroon. Of late, cocoa production in this belt has considerably declined because of the seasonal winds from the Sahara, which block the sunlight needed for bean pods to grow. Heavy rainfall, which precedes the windy season spreads a rotting disease.
Supply constraints are being faced by the chocolate industry worldwide as exports from the Ivory Coast, the world’s top producer, down by a third in recent months. The global price of cocoa has risen sharply. Cocoa futures have already doubled this year, trading at a record high of more than US$10,000 per metric ton in New York after rising more than 60% the previous year. Farmers who harvest cacao beans say the increases aren’t enough to cover their lower yields and higher production costs.
Read Also;
https://trendsnafrica.com/ivory-coast-cocoa-farmers-demand-price-increase-for-their-produce/
https://trendsnafrica.com/global-cocoa-prices-skyrocket-as-yield-drops-further-in-the-continent/
Yet the high Easter demand for chocolate carries a potential threat to big confectionery companies. Major global makers in Europe and the United States have more than passed on the rise in cocoa prices to consumers. Net profit margins at The Hershey Company increased to 16.7% in 2023 from 15.8% in 2022. Mondelez International, which owns the Toblerone and Cadbury brands, reported a jump to 13.8% in 2023 from 8.6% the year before.
