Yahoo Finance Record cocoa prices sour the outlook for chocolate lovers beyond Easter
This year’s expensive Easter eggs could just be the start of an unwelcome trend for sweet-toothed treat-seekers, after cocoa prices melted records today.
The beloved bean broke through a key level – trading above $10,000 (£7,900) a tonne – on world commodity markets. The price has already doubled in 2024, after poor harvests in West Africa have created a scramble for the available supply of the essential chocolate ingredient. .
After a long history of being underpaid by the industry, farmers in this key region for global supply are locking in higher prices in an under-supplied market. Other cocoa-exporting nations are moving to increase production, but growing more of the crop takes time.
And there is a relatively long lag between record prices paid by processors and their impact on consumers.
That means the hikes already seen in Easter prices are likely to be part of a longer trend, reaching further into the year and even as far as Christmas.
Nidhi Jain, commodity specialist at business intelligence firm The Smart Cube, said:
“Major chocolate producers have purchased the commodity in advance and stocked inventory, [but prices are likely to increase.”
She also pointed out that sugar prices are higher, due to “the adverse weather associated with El Niño”, a weather pattern that has “brought dry conditions to India and Thailand”, and so:
“As the supply of both commodities dwindles, chocolate makers are expected to raise prices accordingly, passing rising costs onto consumers.”
The sour outlook comes after recent research from consumer group Which? advised people to shop around into the long bank holiday weekend, with “eggflation” arriving.
Ele Clark, retail editor at Which? said: “To ensure you get the best value for money on your Easter chocolate, shop around and compare the price per gram across different pack sizes, retailers and brands.”
