The price of cocoa – the main raw material for chocolate – has risen above $10,000 per tonne for the first time. The Belgian chocolate companies speak of an “unprecedented situation”.
The price of cocoa has been rising for months due to fears of shortages, and the boom has only accelerated in recent weeks. On Tuesday, 10,047 dollars (9,259 euros) was paid for a tonne of the raw material on the futures market in New York.
Panic
There is panic in the cocoa market. A combination of either too dry or too wet weather and structural problems – such as older and diseased trees – is leading to smaller harvests in West Africa, where most of the cocoa comes from.
A year ago, less than 3,000 dollars (2,765 euros) was paid for a tonne. This year alone, the cocoa price doubled. Not only the poorer harvest conditions, but also stricter environmental regulations in the European Union, for example, are pushing up prices. Other countries that grow cocoa beans, such as Brazil and Ecuador, are trying to increase their production. However, it takes several years before newly planted trees bear beans.
The biggest price shock for consumers is yet to come
Chocolate in the store will automatically become more expensive. The expectation is that the biggest price shock for consumers is yet to come.
Choprabisco, the federation representing Belgian chocolate producers, says the price increase poses major challenges for the Belgian chocolate sector. “An unprecedented situation,” it sounds, which the companies are each trying to deal with in their own way.
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Tags: Tons cocoa worth dollars time chocolate inevitably expensive Unprecedented situation Economy
