Turkey: The increase in cocoa prices pushes chocolate production costs

Published Mar 30, 2024

Tridge summary

Ahmet Tiryakioğlu, the Chairman of TİM's Cereals, Pulses, Oilseeds and Products Sector Board, has pointed out the significant challenges faced by the chocolate production industry due to soaring cocoa prices, which have surpassed $10,000 per ton as a result of climate change-induced droughts. Despite these hurdles, Turkey's chocolate and cocoa product exports have impressively grown to $860 million in 2023, marking a 14.3% increase in the first two months compared to the previous year. The spike in cocoa prices, driven by supply shortages and speculative trading, has led producers to seek new cocoa supplying countries. The Southeastern Anatolia region has emerged as a notable exporter in this sector, with its chocolate and cocoa product exports expected to account for 4.8% of the region's grain industry exports in 2023.

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Original content

Ahmet Tiryakioğlu, Chairman of the Turkish Exporters Assembly (TİM) Cereals, Pulses, Oilseeds and Products Sector Board, stated that cocoa prices reached their peak due to the effect of the decrease in global supply, and therefore chocolate production costs are challenging. In his written statement, Tiryakioğlu stated that the price of cocoa exceeded 10 thousand dollars per ton due to factors such as climate change and drought. Pointing out that exports of food products containing chocolate and cocoa corresponded to 7 percent of the sector's exports last year, Tiryakioğlu made the following assessment: "According to TÜİK data, the size of our total cocoa imports, which exceeded 211 thousand tons last year, reached 672 million dollars. As a result of this raw material entry, which also covers the domestic consumption need, our chocolate and cocoa product exports in 2023 reached 860 million dollars. As in almost every field of food, our companies "It has a competitive structure that ...

Source: Sondakika