Cocoa, essential for chocolate production, is at its highest price in decades due to adverse weather conditions impacting cacao bean growth. On Monday, cocoa futures hit $3,786 per metric ton, the highest level since 1979.
This surge is attributed to a challenging farming season marked by high temperatures and insufficient rainfall, particularly in West Africa, which produces nearly 75% of the world’s cocoa.
David Branch from Wells Fargo’s Agri-Food Institute explains that the main cocoa-producing countries—Ivory Coast, Ghana, Cameroon, and Nigeria—are experiencing unfavorable conditions for cacao growth.
The crop thrives in consistent temperatures, high humidity, and ample rain, conditions that have been disrupted this season.
Climate Challenges Impact Chocolate Sizes for HalloweenThe current climate issues are partly due to El Niño, a natural weather phenomenon expected to continue through mid-2024. This is the second consecutive season of cocoa shortages, further straining an already pressured sugar market and causing chocolate prices to rise.
September candy prices were up 7.5% from the previous year, and the National Retail Federation predicts Halloween candy spending to reach $3.6 billion, an increase from $3.1 billion in 2022.
Mars, a major candy producer, acknowledges high inflation and material costs but has not raised prices since June, aiming to keep treats affordable.
In contrast, specialty chocolatiers like Dandelion Chocolate, which pays nearly $7,000 per metric ton for premium cocoa, remain somewhat shielded from market volatility.
However, Dandelion’s Greg D’Alesandre warns that future cocoa shortages could impact the availability and cost of high-quality beans due to market dynamics.
As a result, Halloween chocolates may become not only more expensive but also smaller in size, disappointing consumers with reduced portions compared to previous years.