18.9 C
Nicosia
Friday, May 3, 2024
type here...
News

“Bitter” chocolate eggs this year- Sharp rise in the price of cocoa

0
20

Must read

«Πικρα» τα σο&kappa ;ολατνια αυγφ&oτομηνοδ&omicron ;ς τις κκο /></p> <p><strong>Consumers may be in for a bitter surprise in their Easter baskets this year. Chocolate eggs and bunnies are more expensive than ever as changing climate patterns eat into global cocoa supplies and farmers' profits in West Africa.</strong></p> <p>About three-quarters of the world's cocoa – the main ingredient in chocolate – is produced on cocoa trees in Ghana, Ivory Coast, Nigeria and Cameroon. But seasonal dust winds from the Sahara have been strong in recent months, blocking the sunlight needed for the seeds to grow. Last season, heavy rains spread a decay disease.</p> <p>With exports from Ivory Coast, the world's top producer, down by a third in recent months, the global price of cocoa has risen sharply. Cocoa futures have already doubled this year, after rising more than 60% in the previous year. Farmers who harvest cocoa beans say the increases are not enough to cover lower yields and higher production costs.</p> <p>However, the high demand for Easter chocolate is butter to the bread of the big confectionary companies. The giants of the species in Europe and the United States have passed on the rise in cocoa prices to consumers. Hershey's net margins rose to 16.7% in 2023 from 15.8% in 2022. Mondelez, owner of Toblerone and Cadbury, jumped to 13.8% in 2023 from 8.6% a year earlier.< /p> </p> <p>“Consumers are likely to see a sharp spike in the price of chocolate this Easter,” Wells Fargo said in a report this month.</p> <p>Mondelez raised chocolate prices by as much as 15% last year and will consider additional increases to help meet its revenue growth forecasts in 2024. Hershey also raised prices on its products last year and has not ruled out further increases.</p> <p>In the UK, British consumer research and services company Which? found that chocolate Easter eggs and bunnies from popular brands such as Lindt and Toblerone cost around 50% more this year while some chocolate eggs have shrunk in size.</p> <p>Cocoa is traded in a regulated, global market. Farmers sell to local dealers or processing factories, who then sell cocoa products to global chocolate companies. Prices are set up to a year in advance. Many farmers blame climate change for their poor crops. Cocoa trees only grow near the equator and are particularly sensitive to weather changes.</p> <p>To help increase production, local authorities are promoting education about farming methods that could mitigate the effects of climate change, such as the use of irrigation systems. Ghana's president has also promised to step in to help farmers get a better deal.</p> <p>The National Retail Federation, a U.S. trade association, expects consumer spending this Easter to remain high despite rising candy prices. The latest survey showed that consumers are expected to spend $3.1 billion on chocolate eggs, bunnies and other sweets this Easter (up from $3.3 billion a year ago).</p> <p>In Switzerland, where home to the world's biggest chocolate consumers per capita, domestic consumption fell slightly last year by 1% to 10.9kg per person, according to industry association Chocosuisse. This slight drop appears to be linked to rising retail chocolate prices.</p> <p>Swiss chocolate maker Lindt & Sprüngli, however, recorded increased profitability, to 15.6% from 15% a year earlier. However, some smaller businesses selling chocolate are struggling to keep up with the rise of</p> <p>Sandrine Chocolates, a shop in London that sells handmade Belgian chocolates, is struggling to survive after decades in business. The owner says the UK's cost of living crisis and weak economy have made people more concerned about food than luxury chocolate, especially when cheaper alternatives are available in big grocers.</p> <p><noindex></p> <div class=Source: 24h.com.cy

Previous article
The Bank of Cyprus share buyback program begins
Next article
Leaked CIA report: North Korea is preparing to unleash a deadly virus on the planet
- Advertisement -AliExpress WW

More articles

- Advertisement -AliExpress WW

Latest article

© 2024 Cyprus Digest. All rights reserved.

Popular in Cyprus

About Us

Popular Category

Editor Picks

MORE STORIES

Ministry of Finance: Efforts against illegal financing continue