Cocoa at a record high: price rise and impact on chocolate prices - analysis by a financial expert

Cocoa at a record high: price rise and impact on chocolate prices - analysis by a financial expert

According to a report by www.tagesschau.de,

Cocoa is more expensive than it has been in decades. The price has doubled within a year and reached a record high of $5,874 per ton on the New York Commodity Exchange. This could impact chocolate prices as consumers are likely to face price increases again. One of the largest chocolate producers, Hershey, does not rule out price increases.

The reason for the price increase is increasing demand and poor harvests in the largest cocoa producers, Ghana and Ivory Coast. This has been driving up prices for years. According to agricultural expert Michael Berger from WWF, there could be greater fluctuations in the prices and availability of foods such as avocado, cocoa, coffee, mango, coconut, papaya and bananas in the future.

The uncertainty and shortages are leading to higher prices, particularly due to the climatic conditions for growing certain products and the increasing risk of crop failures due to more frequent extreme weather events. Chocolate prices had already risen significantly in the past. The consumer price index for chocolate bars rose from 100 points in 2020 to 119.1 in 2023, an increase of around 19.1 percent.

These price increases can impact the market and the financial industry. Rising raw material prices could lead to higher production costs for chocolate manufacturers, which could ultimately lead to higher prices for consumers. It is important to continue monitoring the situation and adjust possible investment strategies to be prepared for the impact of this price increase.