- Highest cocoa prices in 46 years
- Disturbed cocoa harvest among top producers
- Concerns of confectionery manufacturers over rising prices
Unrest on the cocoa market
Recent forecasts of global cocoa production shortfalls have sent the commodity’s price to its highest level in 46 years.
Cocoa is a tropical crop grown mainly in equatorial countries such as Côte d’Ivoire, Ghana, Indonesia and Ecuador. These regions, with their specific tropical climates, have certain weather conditions that are necessary for the cocoa fruit to grow properly. Unfortunately, this summer’s unfavorable weather conditions have led, among other things, to the appearance of cocoa shoot diseases, which have disrupted the cocoa bean harvest at leading producers in Côte d’Ivoire and Ghana. This in turn has led to a decline in supply and, for the third year in a row, a global shortage in the world cocoa market, resulting in an increase in cocoa prices.
Dark clouds over confectionery producers
Dark clouds are gathering over confectionery manufacturers around the world. Galloping cocoa prices, combined with rising prices for ingredients such as sugar, could force them to make difficult decisions about passing on increased raw material costs to consumers. As they look for ways to optimize costs, they may also begin to reduce the amount of product in a package while keeping prices the same. The hope remains that consumer preference for confectionery can offset the increased costs.