Monday, May 20, 2024

Polaris of Enlightenment

Monday, May 20, 2024

Polaris of Enlightenment

“Chocolate crisis” awaits

Published 6 April 2024
- By Editorial Staff
The main producers of cocoa beans have been affected by drought and fires.

The price of cocoa has doubled since the beginning of the year and is predicted to become even more expensive soon. Experts speak of “panic” in the market and an “inevitable chocolate crisis”.

At the beginning of the year, a tonne of cocoa cost just over USD 4 200, a price that rose to over USD 10 000 per tonne by the end of March. The reason for the rise in cocoa prices is a global shortage of cocoa beans. Major producers have been hit by drought, fires and even a lot of plant diseases. According to reports, there have been three consecutive poor harvests.

– This is the main reason why prices have skyrocketed, Jörgen Kennemar, a commodity analyst at Swedbank, told the Swedish tabloid Expressen.

Guan Chong, one of the world’s largest cocoa processors, says everyone is now “panicking” in the market, and Javier Blas on the news site Bloomberg warns that “the chocolate meltdown is coming”.

More costly than copper

We are all now confronting the inevitable chocolate crisis. Over the next few years, market forces will rebalance the market, but everyone must brace for a few years of higher prices“, he concludes.

Prices for cocoa, and therefore chocolate, are expected to continue to rise. Kennemar believes it is “appropriate” for consumers to start stockpiling cocoa and chocolate.

– I think there could be more price increases if these high prices are sustained. $10,000 per tonne is more expensive than buying copper. So yes, it’s good to be able to stock up, he says.

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