Cocoa prices surge to unprecedented record levels

The price of cocoa on the exchange has been climbing higher and reaching new record levels. Since the beginning of this year, it has already risen by more than forty-three percent.
The poor harvest in West Africa influenced cocoa prices. The El Nino weather phenomenon, which means higher temperatures and changing precipitation patterns, brought drought to Ghana and the Ivory Coast, the two largest cocoa bean growers in the world.
The rising cocoa prices mean that chocolate manufacturers have no choice but to raise the price of sweets. According to research data, from 2022 to 2023, the prices of Christmas chocolate products increased by an average of at least 50 percent.
Hershey, one of the top "sweet companies," warned that historical cocoa prices are expected to limit revenue growth this year. CEO Michele Buck did not rule out the possibility of passing on some of the increasing costs to customers, which practically means an increase in prices.
Mondelez is facing similar challenges. It identified rising costs as one of the biggest challenges of this year.
"We have seen significant increases in the prices of cocoa and sugar," said CFO Luca Zaramella.
Over the past year, the price of cocoa beans on the exchange has jumped by more than double, i.e., 132 percent.