close
Thursday February 29, 2024

Heartbreak for lovebirds as Cocoa prices skyrocket right before Valentine's Day

Limited supply of cocoa presents significant challenge for manufacturers, prompting discussions about potential price adjustments for chocolate products

By Web Desk
February 13, 2024
The image shows a pack of chocolates on occasion of Valentines Day. — Glamour
The image shows a pack of chocolates on occasion of Valentine's Day. — Glamour

Have you noticed the rising cost of your favourite chocolate treats just in time for Valentine's Day? 

The sweet indulgence that many cherish is facing a bitter reality as cocoa prices skyrocket to unprecedented levels. But what's driving this surge?

In a surprising turn of events, cocoa futures closed at a staggering $5,888.00 per ton last Friday, marking an all-time high. This surge is not a sudden spike; rather, it's part of a consistent upward trend, with prices more than doubling in the last year and increasing by about one-third in the past month alone.

Why has the cost of cocoa become so steep, especially right before a day synonymous with chocolates and affection?

Chocolate producers, heavily reliant on cocoa as the main ingredient, are grappling with the consequences of this surge. The limited supply of cocoa has presented a significant challenge for manufacturers, prompting discussions about potential price adjustments for chocolate products.

Hershey's, a prominent player in the chocolate industry, acknowledged the impact during a call with analysts. CEO Michele Buck hinted at the possibility of adjusting chocolate prices, saying, “Historic cocoa prices are expected to limit earnings growth this year.” However, the CEO remained cautious about providing specific details, stressing the need to utilise every available tool, including pricing, to navigate the business through these challenging times.

The surge in cocoa prices is not occurring in isolation as it's closely tied to widespread diseases and weather changes affecting cocoa-producing regions. 

Ivory Coast and Ghana, responsible for 60 percent of global cocoa output, are grappling with the spread of diseases through their plantations. Additionally, the El Niño warm weather phenomenon has brought unusual dry weather to the region, further exacerbating the crop shortage.

How will this impact chocolate lovers around the world? 

As the chocolate industry confronts these challenges, the future of cocoa prices remains uncertain. For now, consumers may need to brace themselves for potential adjustments in chocolate prices.