2023-11-12 08:33:15
The price of sweets and Arabica coffee will rise significantly due to the rampant cocoa shortage in West African countries. In the largest cocoa-producing countries, the harvest is low, and unfavorable weather conditions make the situation even worse. According to an agricultural analyst, “the food crisis is now much worse than in 2008”. Cocoa price not so high in 45 years Cocoa prices topped $4,000 a tonne in New York on Friday, the highest level since 1978, as a weak crop outlook in West Africa proved to be a factor in boosting prices this week. There is also an increasing risk that due to weather disturbances caused by El Nino, the global cocoa market will have a deficit for the third year in a row. Cocoa price changes in New York since 1960 “The market does not seem convinced enough that production will recover enough to avoid a supply shortfall in 2023/24,” analysts at ADM Investor Services Inc. wrote in a note. Weather disturbances caused by El Nino can bring drier weather to the most important growing areas. This information only further confirms the probability of closing the third year with a deficit. Mondelez will also be forced to raise prices The June warnings that “due to the cocoa shortage, prices will skyrocket, and consumers should prepare for “chocolate deflation”, seem to be confirmed. This price increase was best experienced during the Halloween period. This is because Americans buy the most sweets at this time because of the children’s favorite “chocolate or cheat” candy collection sale. According to data from the retail price monitoring website Datasembly, consumers have been hit by double-digit inflation in the field of sweets for the second year running. The price of sweets this month jumped by 13% compared to October last year. Earlier this week, Mondelez International, the maker of Milka, 7Days, Oreo and a host of other delicacies, announced that it would be forced to raise the prices of some of its products due to rising cocoa and sugar prices. In the supermarket on weekdays, candy inflation will mean that a 250-pack of Mars chocolates, for example, will cost around $25, compared to $19.50 for the same package two years ago. Meanwhile, sugar prices rose to a decade high in April on fears of a global shortage. Sugar price increase in the last 6 months Arabica coffee can also be expected to increase in price following stocks have fallen to a 24-year low. According to an agricultural analyst, the current global food crisis is “much worse than in 2008”.
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