In the world of chocolate, it has been a roller coaster year for cocoa prices. A failed crop led to financial speculation, causing the price of cocoa to skyrocket to $11,000 per metric ton by mid-April, after starting at $4,200 per ton in December.
The industry, which is reliant on inexpensive crops and labor, has been hit hard by the fluctuating prices. In just two weeks, the price fell nearly 30%, currently sitting at $8,699 per ton. This instability has forced large food companies to raise prices on chocolate products.
Companies that use more pure cocoa may be hit hardest by the price increase. Premium chocolate makers, however, note that they have always paid higher prices to compensate farmers for their hard work.
The wild fluctuations in cocoa prices are causing uncertainty in the market and leading to concerns for the future of the industry. With financial speculators driving up prices, it is unclear when or if the price of cocoa will stabilize.
As chocolate lovers around the world feel the impact of these price increases, it is evident that the future of chocolate production is in flux. Only time will tell how the industry will adapt to these challenges and continue to satisfy the sweet tooth of consumers everywhere.
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