How the cocoa shortage will affect the cost of sweets in Ukraine

Published 2024년 4월 27일

Tridge summary

Global cocoa prices have seen a significant increase, tripling since the start of the year, due to a combination of factors including aging trees, diseases, and unfavorable weather conditions in West Africa, the primary cocoa supply region. This shortage has led to a raw material shortage among large chocolate manufacturers, potentially leading to higher product prices and legal claims. The situation is further complicated by the potential for bankruptcy and market instability. In response, Ukrainian manufacturers are considering reducing the size of chocolate bars to mitigate the impact of rising raw material costs. Experts predict that the cost of chocolate in Ukraine could double by the end of the year.

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

Original content

Since the beginning of the year, world cocoa prices have sharply tripled. According to experts, this may affect the increase in prices in Ukraine, which will lead to a doubling of the cost of chocolate. Zn.ua reports this. West Africa is the main cocoa supply region. The critical shortage of the sweets component in the world is caused by aging trees, the spread of diseases and unfavorable climatic conditions in this part of the world. This has already led to a sharp jump in prices in the futures markets. As of April 20, cocoa futures rose to $12,216 per ton. Currently, large chocolate manufacturers are experiencing a shortage of raw materials, which can lead to higher prices for products. Also, there are already legal claims against some companies and bankruptcy cannot be ruled out. The market is facing a period of instability and great risks. It is noted that Ukrainian manufacturers can reduce ...

Source: Finance