World: Risk of cocoa shortage for chocolate

Published Sep 30, 2023

Tridge summary

The new cocoa harvest in West Africa may not meet expectations, leading to potential cost increases in chocolate production. Cocoa prices already rose by 47 percent last year due to concerns of bad weather and disease affecting production in Ivory Coast and Ghana. With El Nino expected to worsen the situation, analysts are predicting a third global famine for the season, potentially causing further price increases and putting pressure on consumption.

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

Original content

It is said that costs in chocolate production may rise if West Africa's new cocoa harvest does not meet expectations. Cocoa prices rose nearly 47 percent last year on fears that bad weather and disease would damage production in Ivory Coast and Ghana, which account for two-thirds of the world's supply. With El Nino expected to worsen the situation, analysts are predicting a third global famine for the season that has just begun. This means inflation could continue in the snacks segment even as cost pressures ease for food more broadly. Hershey Co. and Lindt & Spruengli AG have already warned of possible price increases. Darren Stetzel from broker StoneX said, "Unless there is a dramatic improvement in the outlook, the current situation looks relatively dire. Further price ...

Source: TRBloomberg