Farmers process cocoa pods in a cocoa orchard in the Côte d'Art.
Chocolate, which many people love to eat, may have to rise in price, because the price of raw cocoa beans has reached a seven-year high, while sugar, another main ingredient, also hit an 11-year high in April this year. Of all the different types of chocolate, dark chocolate is getting the biggest hit. Because dark chocolate uses more cocoa, the content ranges from 50% to 90%.
U.S. chocolate prices have risen 14 percent in the past year, according to data from U.S. consumer intelligence database NielsenIQ, though some market watchers say chocolate could become more expensive due to tight cocoa supplies.
Sergey Chetvertakov, head of S&P Global Commodity Research and Analysis, told the financial media CNBC that the cocoa market has soared recently, and this year's production season is the second consecutive year in which supply is in short supply, and inventories at the end of the production season are expected to drop to unusually low levels. Cocoa prices soared to $3,160 a metric ton on Friday (9th), the highest since May 5, 2016, after a peak of $3,171 a metric ton in the previous wave.
Europe is the world's largest importer of cocoa beans, and consumer demand is near record highs.
Chetvertakov mentioned that for West Africa, where cocoa is mainly produced, the El Niño phenomenon will cause below-average rainfall and strong Hamadan winds (hot and dry desert storms). Ivory Coast and Ghana in West Africa account for more than 60% of the world's cocoa production. He predicted that the next production year (October this year to September next year) will continue to be in short supply of cocoa, and the cocoa price is estimated to be as high as US$3,600 per metric ton.
Cocoa butter prices have risen 20.5 percent this year, according to Mintec, a database of food commodity prices. Cocoa butter is what makes chocolate bars. Sugar prices hit an 11-year high in April, and a report from Fitch Research said sugar futures were supported by supply concerns from India, Thailand, China and the European Union, as drought hurt crop growth.
Nice post and this is about the cocoa prices. The wor kers are busy with the cocoa and they are going to make choco powder. Cocoa powder can be made for chocolates and choco drink.
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