Easter is a time of year for family to come together and hide away sugary treats, but this year we have bad news for chocolate lovers. We reported earlier in the year that cocoa prices were under severe pressure and local manufacturers were going to pass price increases onto consumers with a sweet tooth.
Now, due to various environmental and supply issues, cocoa prices have hit an all-time high of more than $10 000 (R188 700) per metric ton. This is only likely to mean more bad news for chocolate lovers in South Africa as the price of sweet treats only has one way to go. And that’s up.
BAD NEWS FOR CHOCOLATE LOVERS
Here’s what’s happening with the cocoa price so far this year:
- January 2024 – cocoa prices $4 200 (R80 000) per ton.
- March 2024 – first time ever that the cocoa commodity price has broken $10 000 per ton ceiling (R188 700).
- Pressure is due to poor harvests in cocoa-producing countries like Ivory Coast and Ghana.
- West Africa is responsible for 70% of the world’s cocoa.
WHAT’S BEHIND THE POOR HARVEST?
Essentially, the bad news for chocolate lovers comes down to a cocoa shortage and lack of sustainability in the industry. Likewise, cocoa production is the main source of income for Ivory Coast and Ghana’s economies. And a knock-on effect of such a shortage will hit all the way along the value chain.
For South African-based confectionery producers, record cocoa prices and currency fluctuations mean a 60% increase on cocoa in just one year. In South Africa, the situation is further aggravated by sugar prices, sugar taxes, load-shedding, and logistics constraints of the business. Therefore, chocolate lovers should brace for even higher prices at the till as these constraints persist.
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What do you think of this bad news for chocolate lovers this Easter? Will you keep buying chocolate, even at these prices, or is it time to cut back? Be sure to share your thoughts with our audience in the comments section below. And don’t forget to follow us @TheSANews on X and The South African on Facebook for the latest updates.
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