A plate of chocolates.
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Chocolate lovers are in for a bitter pill – as the cost of cocoa rises, the price of their favorite treat will rise even further.
Chocolate prices have risen 14 percent over the past year, according to consumer intelligence database NielsenIQ. According to some market watchers, prices are set to rise further due to tight supplies of cocoa, an important part of the much-loved food product.
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“The cocoa market has experienced a significant surge in prices … the second consecutive supply deficit this season, and cocoa ending stocks are expected to fall to unusually low levels,” said Sergei Chee, chief research analyst at S&P Global Commodity Insights. Tvertarkov told CNBC in an email.
cocoa price It soared to $3,160 a metric ton on Friday – the highest level since May 5, 2016. The commodity last traded at $3,171 per metric ton.
A farmer cuts cocoa pods to collect the beans inside at a farm in Azaguie, Côte d’Ivoire, Friday, November 18, 2022.
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“I think consumers should be prepared for the possibility of higher chocolate prices,” he said, as chocolate producers are forced to pass on higher production costs to consumers as they continue to suffer from rising raw material costs, surging energy bills and Squeeze of rising prices. interest rate.
Cocoa butter, which makes up a large portion of chocolate bars, is also up 20.5% so far this year, according to food commodity price database Mintec.
Sugar and cocoa butter prices soar
“Because chocolate is mainly composed of cocoa butter, with dark chocolate or milk containing some cocoa mass, the price of butter most directly reflects the movement of chocolate prices,” said Andrew Moriarty, Director of Commodity Insights at Mintec.
He added that cocoa consumption was “close to record levels in Europe”.the area is world’s largest importer Products of.
Sugar, another key ingredient in chocolate, has also surged — breaking an 11-year high in April.
Dark and milk chocolate bars with cocoa nibs, cocoa powder and cinnamon sticks. Among the different varieties of chocolate, prices for dark chocolate will be hit hard.
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“Sugar futures continue to find support from ongoing supply concerns in India, Thailand, China and the European Union, where dry conditions have affected crops,” said BMI, the research arm of Fitch Solutions, in a May 18 report.
Therefore, the high price of chocolate is not expected to come down anytime soon.
“Continued strong demand relative to whatever economic indicator people choose to look at is likely to keep prices elevated for the foreseeable future,” said Darin Newsom, senior market analyst at Barchart.
“Only when demand starts to come down, which I don’t think has happened yet, will the price of chocolate start to come down,” he said.
According to reports, among the different varieties of chocolate, prices of dark chocolate will be hit the hardest.Dark chocolate contains more cocoa solids than white and milk chocolate, containing about 50% to 90% cocoa solidsCocoa Butter And Sugar.
“So the most affected chocolate prices will be dark chocolate, driven almost entirely by cocoa ingredient prices,” Mintec’s Moriarty said.