In a sudden spike in price, attributed by the industry experts to diminishing global supply, New York cocoa futures shot up to $3,552 per metric ton, briefly climbing earlier to $3,569 per ton, which is the highest price for the commodity since March 2011.
Prices for chocolate-making ingredient jumped to the record-high in over twelve years, amid growing worries about future supply at a time when available stocks are already low.
Decline in fertilizer use due to high costs and extreme weather threaten the amount of cocoa that top growers Ivory Coast and Ghana can produce.
According to market analysts, the prospect of a strong dry season from November onward, as the El Nino weather event usually reduces rains in West Africa, also pus the crops in the western part of Africa, where most cocoa is grown, at risk.
Cocoa market analysts estimate that Ivory Coast’s cocoa bean harvest will fall by 20% in 2023 compared to last year. In Ghana, it is projected to fall below the historical average. The shortage forced key chocolate makers Lindt and Hershey Co. to issue a warning about potential further price increases.
The crisis in the industry could affect not only the quantity of products, but also quality. In addition to higher prices, chocolate companies may reduce the size of their chocolate bars.
