Chocolate prices in the world may jump to an all-time high

Chocolate

Poland

Ukraine

Market & Price Trends

Published Mar 28, 2024

Tridge summary

World cocoa prices have soared to over $10,000 per ton, driven by a poor harvest in major West African countries, leading to a supply shortfall for the third consecutive year. This surge is raising concerns about potential increases in chocolate prices as manufacturers grapple with profit pressures. The situation is further complicated by new European Union regulations aimed at curbing the sale of products linked to deforestation, affecting EU chocolate producers' supply chains. With the stocks-to-grind ratio anticipated to reach its lowest in over 40 years, the market is on edge about the impact on chocolate prices or product sizes, particularly with the upcoming Easter season, a critical time for chocolate consumption.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

World prices for cocoa jumped above the unprecedented mark of $10,000 per ton, which may cause a significant increase in the price of chocolate. This is reported by Bloomberg. The market was rocked by a poor harvest from key West African producers, pushing the world into a third consecutive annual supply shortfall. In addition to concerns about physical supply shortages, pressure is also mounting on the financial market. The price of cocoa continues to rise rapidly. Analysts now find it difficult to say how justified the current prices are. There is a risk of deterioration of the supply situation. European Union rules aimed at stopping the sale in stores of products that destroy forests could make it even more difficult for EU chocolate producers to supply. Attention is now focused on the future average harvest in West Africa, the smaller of the two annual harvests. This season's stocks-to-grind ratio will fall to its lowest level in more than four decades, reflecting the volatile ...

Source: Agropolit