Chocolate prices have witnessed a remarkable increase in recent times, which made it difficult to ignore this change, which has affected love products such as candy and holiday cakes and cocoa powder.
Cocoa prices jumped about 300% during the past year, and this was sharply reflected in chocolate prices this year compared to last year.
According to the American bank “Wales Vargo”, chocolate prices in the United States increased by 5 times more than the increase rate of the increase during Valentine’s Day for 2023.
For example, the price of the large “Risis Hares” chocolate panel rose by 13% in February 2024 compared to the same month of the year before. In the United Kingdom, the price of a white chocolate egg increased from 5 to 6 pounds (equivalent to 6.63 to $ 7.96) in Tesco stores, while the egg weight reduced from 316 grams to 258 grams, and this led to a 47% jump in the unit price.
Although cocoa prices fell by about 20% since they reached their climax in December 2024, consumers are still paying record prices against chocolate products.
What is behind the high prices of cocoa?
Cocoa prices amounted to unprecedented levels, as future New York trading contracts reached $ 12.565 per ton in December 2024. Several factors contributed to this rise, most notably the volatile weather that harmed cocoa farmers in West Africa, the region that is accounted for by the majority of global production.
Amber Sawyer, an analyst at the Energy and Climate Center, explains that the high prices of chocolate was not surprising, noting that “chocolate is one of many foodstuffs affected by the fluctuations of weather resulting from climate change, and this phenomenon is a candidate for the future.”
On the other hand, heavy rains in 2023 and acute drought in 2024 destroyed large areas of cocoa crops in Ghana and Côte d’Ivoire, two states that hom to about two -thirds of international cocoa. Production also recorded a remarkable decline in Nigeria and Indonesia, the third and fourth largest cocoa producer, respectively.
Additional Challenges: Climate and Environmental Laws
The climate was not the only factor behind the cocoa crisis, as West African governments imposed strict laws to combat forest removal, which restricted farmers to expand their farms, and led to a shrinkage.
The crisis was exacerbated by other problems such as the aging of cocoa trees, as many of them were not renewed, and this caused the decline in productivity year after year.
Diseases of deadly and migration towards gold
In addition, cocoa farmers suffer from the outbreak of “cocoa pill swelling”, which destroyed wide crops in Côte d’Ivoire and led to a sharp decrease in production.
In Ghana, the illegal gold mining activities attracted an increasing number of farmers away from cocoa cultivation, and this reduced the supply and led to more prices on prices.
How do chocolate producers deal with the crisis?
In the face of these challenges, chocolate producers have taken multiple steps to adapt to high costs. Some companies transferred the increase to consumers by raising prices, while others resorted to reducing cocoa content in their products or replacing it with alternative ingredients.
For example, the company “Nestle” has launched the hazelnut flavor within the “Airo” group in Britain, while “Cargel” entered into a partnership with “Voyage Foods” to distribute cocoa -free products.
Where are cocoa prices heading?
Experts expect cocoa prices to remain volatile in the short term. Although there are expectations of a possible production surplus during the 2024-2025 season, the risks associated with climate change remain in place and may negatively affect the stability of supplies.
In parallel, it is estimated that the alternative products of chocolate may witness increasing popularity, which may lead to a gradual change in consumer tastes during the coming years.
In conclusion, the high prices of chocolate are associated with a number of complex factors, starting with volatile weather and environmental laws, through plant diseases, to economic and social changes such as the prosperity of gold mining. With the continued global demand for chocolate, this sector appears to be vulnerable to fluctuations during the foreseeable future.
