Global cocoa prices have reached a record high on the New York commodities market, with the price hitting $5,874 per ton. This marks a significant increase, as the cost has roughly doubled since the beginning of the previous year. Major chocolate manufacturers, including Hershey and Mondelez, the company behind the Cadbury brand, have noted the impact of these rising cocoa prices on their businesses. Hershey has reported a 6.6% fall in sales for the three months to 31 December, while Mondelez has seen significant increases in both cocoa and sugar costs.
The soaring cocoa prices are beginning to affect consumer prices, with Hershey's CEO Michele Buck indicating the possibility of future price hikes for customers. In the UK, a consumer group reported a 50% increase in the price of some festive chocolate boxes over a year. Chocolate prices in UK supermarkets rose by 15.3% in contrast to an overall inflation rate of 8.3% for food and drink. The primary cause for the spike in cocoa prices is attributed to poor harvests in West Africa, particularly in Ghana and Ivory Coast, the world's two largest cocoa producers. The El Niño weather phenomenon, causing drier conditions in these regions, along with climate change impacts like hotter temperatures and altered rainfall patterns, are affecting cocoa bean harvests.