Chocolate prices break records, watch out for Valentine's Day mistakes in Indonesia

Published 2024년 2월 9일

Tridge summary

Cocoa futures prices have risen nearly 40% since the beginning of the year due to the El Nino weather phenomenon causing drier conditions in West Africa, disrupting cocoa harvests in Ghana and Ivory Coast, the world's leading cocoa producers. This has affected the chocolate industry, with Hershey's CEO, Michele Buck, predicting flat revenue growth this year due to high cocoa prices. However, Hershey is well-prepared with a robust hedging strategy and price visibility on inputs through 2024.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Jakarta, CNBC Indonesia - Problems involving the food industry continue to plague the world. This time, it was chocolate or cocoa's turn to start experiencing price shocks. The commodity which is the raw material for the chocolate processing industry which is synonymous with Valentine's celebrations is not doing well. Cocoa futures prices have jumped more than US$ 1,000 (Rp. 15.6 million) or almost 40% since the beginning of the year and reached an all-time high of US$ 5,874 (Rp. 91.8 million) per metric ton on Thursday (8/ 2/2024). The El Nino weather phenomenon causes drier temperatures in West Africa, which is home to three-quarters of the world's cocoa production. This then disrupted harvests in Ghana and Ivory Coast, the two largest peanut producers. "Changing weather patterns mean potential cocoa yields are now permanently disrupted," Humza Hussain, commodities analyst at TD Asset Management, told CNBC Players in the processed chocolate industry are also starting to notice ...

Source: Cnbcindonesia