West African cocoa crisis sends chocolate prices up

Higher cocoa prices, due to catastrophic harvest in West Africa, triggered a surge of chocolate prices.

About 60% of Cocoa, a key chocolate ingredient, is produced in West African powerhouses Ghana and Cote D’Ivoire, which both reported a sharp drop in output due to a devastating heatwave.

Experts expect that chocolate prices would further rise by the end of the year as inventories empty.

In the US, end consumers are already feeling the heat after an increase in chocolate prices on store shelves by more than 10%, while in the UK prices increased by 12.6%.

Prices of cocoa skyrocketed to a record 10,000 dollars per ton last week. They are poised to further surge amid a disastrous output in west Africa.

Besides climate change, the drop in cocoa prices is also blamed on other factors such as rising price of fertilizers, deforestation and illegal mining practices that degrade land.

Chocolate maker Hershey’s told the BBC the company would increase prices to deal with the crisis.

Similarly, Mondolez, owner of Oreo and Toblerone, increased prices by 15% in 2023 and plans additional price hikes this year.