- Sugar and cocoa prices are rising, challenging cocoa and sugar producers.
- Climate change is affecting the availability and cost of key raw materials.
- Chocolate may become a luxury good as cocoa and sugar prices rise.
Dynamic increases in cocoa and sugar prices
Recent changes in the global commodity market have brought significant price increases, especially for cocoa and sugar.They are creating challenges for both producers and consumers around the world, and are being driven by ongoing climate change. Rising temperatures, erratic rainfall and extreme weather events such as droughts and heavy rains are negatively affecting cocoa and sugar cane plantations. As a result, the production and quality of the raw materials are declining, which in turn leads to higher prices on the world market.
El Niño phenomenon poses challenges for cocoa and sugar producers
In areas where a lot of sugarcane is grown, such as India, Thailand and China, drought could significantly reduce yields, resulting in sugar shortages and an increase in production costs, driving up prices on the world market.
Cocoa is also vulnerable to climate change, including drought, which reduces soil moisture, reducing water availability for cocoa trees. This can lead to declining yields and lower quality cocoa beans, affecting the availability and cost of the raw material. With cocoa and sugar prices rising, chocolate may soon become a luxury good.
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