Valentine’s Day has arrived, and if you’re intending to buy chocolates for your loved ones, you could be in for a surprise.
Cocoa, the main component in chocolate, has hit an all-time high as a result of crop devastation in West Africa.
As a result, chocolate manufacturers are feeling the pinch and passing on price increases to consumers.
World cocoa prices rose for the ninth day in a row on Sunday, heightening concerns that supply shortages could be extended owing to extreme weather and disease-ravaged cocoa trees in West Africa’s leading producer region.
On Friday, the benchmark ICE London cocoa futures soared to a record 4,916 pounds per metric ton before finishing 2.1% higher at 4,757 pounds/ton.
These prices have more than doubled since the beginning of last year.
In fresh York, benchmark ICE cocoa futures hit a fresh high of $6,030 per ton on Friday, closing up 1.4% to $5,888 per ton, having nearly doubled since the beginning of last year.
This month, a Reuters poll on cocoa anticipated a global shortfall of 375,000 tonnes for the 2023-2024 season, more than twice as much as predicted in the August survey, indicating the market’s third consecutive shortfall.
The cost hike is being reflected on shop shelves, and chocolate giant Hershey expects a further drop in demand for its products from cash-strapped consumers following a 6.6% drop in fourth-quarter sales.
