Cocoa prices soared last month, reaching record highs last weekend just before Valentine’s Day.
cocoa futures closed Friday’s price was $5,888.00 per tonne, surpassing Thursday’s record. Prices have more than doubled in the past year and increased by about a third in the last month.
Chocolate producers who rely on cocoa as the main ingredient in their products Felt of price As supply becomes more limited, demand is tighter.
In a conference call with analysts last Thursday, the CEO of chocolate maker Hershey did not rule out raising the price of chocolate for customers to combat the price increase.
“Historic cocoa prices are expected to limit profit growth this year,” CEO Michelle Bach said, according to multiple reports.
“I can’t speak to future prices,” she says. reportedly He added: “Given where cocoa prices are, we intend to use all the tools in our toolbox, including pricing, as a way to manage our business.”
The price hike comes amid an outbreak of disease and changing weather conditions that are impacting cocoa farmers. The disease is rampant on plantations in Ivory Coast and Ghana, two major cocoa producing countries. Together they account for 60% of the world’s production.
The warming phenomenon caused by the El Niño phenomenon is also causing an abnormally dry climate in this region. Be expected Crop shortages will become even more serious.
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