World cocoa prices have more than doubled in an hour. Mainly because of the bad weather in West Africa, where most of the cocoa beans are produced.
The price of the long-term cocoa contract on the New York Mercantile Exchange reached a historic high of $5,893 per ton. A year ago, cocoa was traded at $2,578 per ton.
The main reason for the price increase was the unstable weather in Côte d’Ivoire and Ghana, which supply the market with up to 70% of cocoa. Last year, there was a severe drought in the region, and then there were heavy rains, which seriously reduced the yield of cocoa beans. It is expected that this year, the natural phenomenon of El Niño will affect the countries of West Africa even more – an increase in the temperature of the equatorial waters of the Pacific Ocean, which will again bring heat and drought.
Global chocolate manufacturers call the rising cost of ingredients – cocoa and sugar – one of their main problems in 2024.
Russian confectioners have already warned that prices for chocolate products may rise by up to 20%. In addition to the cost of cocoa, the increase in prices for packaging and logistics, as well as the weakening of the ruble, affects travel.