The global price of cocoa set a record

Economy Global
The price of cocoa has set a global record, the dry weather is damaging the crop in West Africa, BBC reports. On the New York commodity market, the price of cocoa reached a new all-time high of $5,874 per ton on Thursday. This amount is roughly double that of last year.

On Thursday, one of the world’s largest chocolate makers, Hershey, warned that “historic cocoa prices are expected to limit earnings growth this year.” The company’s CEO, Michele Buck, did not rule out raising prices for customers either. “Given where cocoa prices are right now, we will use all tools, including pricing, to manage the business,” he said.

Last month, Mondelez, the company behind the Cadbury brand, identified rising ingredient costs as one of its challenges in the coming year.

Cocoa prices have been boosted by poor crop averages in West Africa, the area that produces most of the world’s cocoa supply. The El Niño weather phenomenon has caused drier weather in Ghana and Ivory Coast, the world’s largest producers of cocoa beans.

Higher temperatures and shifts in rainfall patterns caused by climate change may also affect crop yields.


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