Even though the indulgence of festivities like Easter and Eid al-Fitr is weeks away, shoppers might be best advised to start getting hold of chocolate as soon as possible, lest the increasingly expensive treats see further price hikes.
Poor harvests in recent years in Ghana and the Ivory Coast have reduced the supply of cocoa, in turn making it more expensive for chocolate producers and in the end for consumers, once costs are passed on.
Mondelez International, the parent company of British brand Cadbury, recently warned of reduced profits for 2025 in the wake of "unprecedented cocoa cost inflation." Switzerland’s Lindt issued a similarly downbeat assessment in which it pointed to "record-high cocoa costs, substantial price increases, and weakened consumer sentiment."
Similar to the run-up to Easter, demand for chocolate often soars in February ahead of St. Valentine’s Day, with Wells Fargo saying earlier this month that chocolate in the US was 20% more expensive than it was ahead of February 14 last year.
A tonne of cocoa hit a record US$12,646 in December, around four times as much as a decade ago, while producers in turn have reported that making chocolate has been made more expensive not only by cocoa, but by price increases for fuel and transport.
Cocoa supply has fallen short of demand for around four years. Chocolate producers last year were also faced with reduced supplies of sugar after smaller-than-usual harvest in Thailand and curbs on exports by India. Sugar became more expensive in turn, adding to the upward price pressure on chocolate. – dpa
