Chocolate Prices Skyrocketing: The Climate Change Connection
If you're planning to indulge in some holiday chocolates, brace yourself for higher prices. Chocolate has been experiencing a substantial price hike, with a 13.1% increase in November 2022 compared to the same month in 2021, according to German Statistical Office data.
But why the sudden increase in chocolate prices? The culprit lies in the ingredients, specifically cocoa. Cocoa prices have seen an astonishing rise, surging over 60% since the start of 2022. And guess where most of our cocoa comes from? You got it, West Africa.
West Africa, offering almost half of the world's cocoa, has been experiencing heavy rainfall due to climate change. This has resulted in plant diseases, causing a decline in the supply volume, explained the Bundesverband der Deutschen Süßwarenindustrie (BDSI) to ntv.
However, it's not just cocoa pushing up chocolate prices. The EU sugar prices have also been soaring for months. Add to this the heightened production costs for labor, logistics, packaging, and energy, and you have a perfect storm of price increases.
The industry doesn't see an end to the chocolate price surge in the near future. Climate conditions in cocoa-growing regions remain unpredictable. Meanwhile, the EU Deforestation Regulation, coming into effect by the end of 2024, will require manufacturers to prove the traceability of their chocolate production, adding to the production expenses.
But it's not just consumers feeling the pinch. In West African nations such as the Ivory Coast, cocoa farmers and their families feel the brunt of this price hike. Although the region's government has set minimum cocoa prices for farmers, these haven't kept pace with global market increases. Furthermore, pesticides, crucial for protecting cocoa crops, have become increasingly expensive.
So, as you gear up for your Christmas shopping, prepare for your chocolate expenses to be a tad higher than years past, owing to the perfect storm of climate change, price increases, and production costs.
