Cocoa prices skyrocket

VTV.vn - A severe decline in cocoa supply in West Africa has caused raw material prices to increase sharply, pushing the price of American chocolate to an unprecedented high this Halloween.

American consumers will face higher chocolate prices this Halloween as the cost of cocoa has more than doubled since the beginning of last year, according to a report recently released by Wells Fargo Food and Agriculture Research. Given this situation, American consumers may have to think twice before buying this favorite sweet treat.

Although wholesale cocoa prices have cooled from their peak late last year, producers are still passing on the cost increases to consumers. Many chocolate companies are cutting back on seasonal product lines and adopting a policy of “narrow inflation”—reducing portion sizes but keeping prices the same.

The spike in cocoa costs was due to severe supply disruptions in West Africa, which accounts for about 70% of global cocoa production. Heavy rains in late 2023, followed by El Niño-induced drought in 2024, have exacerbated crop diseases, causing a sharp decline in cocoa production.

Global cocoa production fell 12.9% year-on-year to 4.37 million tonnes in the last season, creating a supply deficit of 494,000 tonnes, the largest in more than 60 years, according to the International Cocoa Organization.

"If the rains had come at the right time, the cocoa yield would have been greater and farmers would have harvested more. But no one can predict the weather," said Nigerian cocoa farmer Ganiyu Adeogun.

According to preliminary estimates from cocoa exporters, production will fall by 10% in the 2025-2026 season (which starts in October) in four West African producing countries. And cocoa prices are likely to remain high at least until the end of the next season, due to the current record cocoa supply deficit.

Tariffs ranging from 15% to 25% recently imposed on major suppliers of cocoa and cocoa products imported into the US are also an additional cost factor.

Mr. Andrew Naum - CEO of Sweetland Candies, USA said: "In the past few years, we have never seen cocoa prices increase so rapidly, nearly 3 times. Input materials are being pushed up so high, our business is really having a hard time managing."

In light of this, analysts advise consumers to look for sweets with lower cocoa content, compare prices across retailers and consider unbranded alternatives that can be more cost-effective than branded products.

Source: https://vtv.vn/gia-ca-cao-tang-chong-mat-100251010164915639.htm