Record price for cocoa before Easter – E24

Cocoa prices have soared so far this year, making the Easter treat more expensive for many people around the world.

In the past three weeks alone, the price of cocoa beans has jumped more than 47% to more than $8,900 per ton, Bloomberg writes. This corresponds to about 95,700 Norwegian kroner.

On Friday, she wrote, the price of cocoa reached a new peak of $8,940 per ton CNBC. At the beginning of 2024, prices were less than US$4,200 per ton.

According to the American channel, cocoa is the commodity with the highest price increase so far in 2024.

Rising cocoa prices lead to higher chocolate prices, and therefore also the prices of Easter sweets that have long been in stores around the world.

People in Norway may be able to pay more for cocoa, even if prices are higher globally, Christian Anton Smedshog, managing director of Agri Analyse, told E24 in February.

– Maybe we will be able to get what we want, and I don't think it will be that bad. But prices will be able to rise in the long term, perhaps from the fall onwards, Smedchug said.

Damaged cocoa crops

The price hike comes after poor harvests in West Africa, Ivory Coast and Ghana, which account for large portions of the world's cocoa production, Bloomberg reported.

The El Niño climate phenomenon, which has brought drought, forest fires and heavy rains, is among the reasons for poor harvests. In addition, virus outbreaks have destroyed cocoa crops.

The cocoa industry is largely made up of small farmers who have long struggled with poor profitability, making it difficult to cope with extreme weather conditions, according to the news agency.

The true cost of chocolate hasn't been noticeable to consumers for a long time, Emily Stone, founder of cocoa retailer Uncommon Cacao, tells Bloomberg.

– The continued decline in producer prices and climate change are pushing the market to rise to these prices. “Now this comes as a shock to some, but this was to be expected,” she added.

Jeff Kilburg, CEO of KKM Financial, told CNBC that he doesn't see an end to rising cocoa prices. However, he believes prices could rise another 50 percent before the price hike ends.

The rainy season in Ivory Coast usually extends from April to October, but the region is facing warmer than usual temperatures, which may prolong the lack of heavy rainfall, according to Reuters. Lack of rain may result in smaller, poorer-quality beans, which could further restrict cocoa supplies to the market in the future, CNBC reported.

Manufacturers warn of rising prices

The fact that the main ingredient in chocolate is becoming more expensive is causing the prices of Easter candy now sold in stores around the world to rise.

In the United States, the average unit price of chocolate eggs rose 12 percent last year, according to a NIQ survey, reproduced by Bloomberg. The cost of some popular Easter eggs in the UK has risen by up to 50 per cent, according to a consumer group.

Forty-four percent of American households say they are buying less chocolate and sweets due to inflation, according to the National Confectioners Association.

Swiss chocolate maker Lindt & Sprüngli announced earlier this month that it would have to raise prices this year and next due to rising raw material prices, Bloomberg reported.

Mondelez International's CFO indicated in February that price increases would likely continue, while Hershey CEO Michel Buck said that “the company is committed to pricing to cover inflation.”