Chocolate prices rise globally by up to 50% amid weak cocoa crops

Shopping bills to purchase daily household needs have decreased recently, which has brought some relief to consumers in several parts of the world, especially America and Europe, compared to recent years, as the decline in food inflation in many countries helps relieve pressure on budgets, with the exception of several products, including chocolate. According to what was reported by DW Network.

Chocolate prices rise

As consumers rush to stock up on goods in preparation for the holidays in Germany and Western countries, chocolate prices have reportedly risen by nearly 50% above their previous price in some types.
Read also:
Even before Christmas shopping begins, the British Consumers Association warned that the prices of some chocolate bars and luxury chocolate gift boxes have almost doubled across Britain.
Meanwhile, one French chocolate producer recently told Ouest France that they are now paying up to 12,000 euros ($12,700) per ton of cocoa – the main ingredient in chocolate – compared to 3,000 euros a year ago.

Weak cocoa yield

Chocolate prices have risen largely due to a poor cocoa crop and a fertilizer shortage that threatens to hurt sales, amid suffering for farmers in Africa whose crops yield little profit.
The world appears to be in the grip of a major wave of financial inflation, and according to some commodity traders, it is only going to get worse.
Read also:
The problem is a major shortage of cocoa after a disastrous harvest in West Africa due to the cocoa bud blast virus, which spreads from tree to tree and can cause a 50% drop in crop yields in just two years.
The wettest-than-normal season is a result of the El Niño weather phenomenon and fertilizer shortages, exacerbated by Russia’s intervention in Ukraine, which has disrupted exports through the Black Sea, among other contributing factors to the current situation.

Cocoa futures

Cocoa futures on the London Intercontinental Exchange were trading at £8,363 (US$10,671, €10,136) per metric ton which represented a five-fold increase in price from December 2022 and nearly a three-fold increase over the past 12 months.
“The recent rise is due to concerns that crops in Ivory Coast and Ghana will miss expectations and underperform, reducing potential surplus production in 2024/25,” said Steve Waterdridge, head of commodity research at Tropical Research Services in London.
Cocoa tree virus is a “disaster” for farmers
Wattridge described the CCSV virus as a “disaster,” adding that “only a little is being controlled in Ivory Coast and Ghana, so the situation will get worse in the future.”
Michel Nardella, Director of the Department of Economics and Statistics at the International Cocoa Organization, believes that it is now necessary to intensify sustainability programs among producers in Africa to improve agricultural practices.
Nardella added: “Small farmers are not necessarily aware of the impact of CCSV on crops and may not know what practices to follow to contain it, so they may be reluctant to uproot it.” [أشجار الكاكاو] Simply because cocoa is their only source of income.”
In a recent article he wrote in the British economic newspaper, the Financial Times, Pierre Andurand, founder and investment director of Andurand Capital Management, warned of “a structural deficit in supply and demand for cocoa beans over several years and that higher prices are on the way.”

Global cocoa production

Andurand said that global cocoa production has already declined by 13% in the 2023-2024 season, noting that European and United States cocoa stocks reached 25% of their level in December 2023, which is the lowest level ever.