Record-high cocoa prices affect this year’s Halloween chocolate production

By: Trademagazin Date: 2024. 10. 18. 12:30

This Halloween season, both chocolate stocks and prices are affected by record high cocoa prices, especially in the United States. CNN reports that the price of cocoa per ton has more than doubled since the beginning of the year, jumping from $4,100 in January to $12,000 in April, and is currently around $7,400. The reason for the price increase is to be found primarily in the unfavorable weather events experienced in the last three years, which affected the cocoa-producing regions of West Africa.

More than 70% of the world’s cocoa supply comes from this region, but El Niño-induced droughts, torrential rains and fungal diseases have all contributed to crop losses. The International Cocoa Organization (ICCO) predicts that the global cocoa harvest could fall by 14.2% this season. This downturn is also affecting chocolate makers: Hershey, for example, reported a profit of $288 million in August, a 48.7% drop compared to the previous year.

In order to cope with the situation, American chocolate manufacturers are using different strategies. Mars, for example, has expanded its range to include fruit candies and gummies, while other companies are reducing the size of their products or replacing chocolate with alternative fillings such as wafers or seeds. Analysts expect cocoa prices to remain high until at least September 2025.