Chocolate prices will rise
The global chocolate crisis is getting worse – African cocoa processing plants are suspending operations. This will lead to a global increase in the price of chocolate, which may become a delicacy in the future. Ukrainian confectionery manufacturers are also under additional pressure due to logistical difficulties amid the Polish border blockade.
According to Reuters With reference to the words of traders, chocolate prices are expected to rise in the world due to the suspension of cocoa bean processing plants in Ghana and Côte d’Ivoire. “Chocolate producers cannot produce products from raw cocoa and rely on processing plants. However, processing plants claim that they are unable to purchase cocoa beans,” the report said.
Over the past year, cocoa prices have more than doubled, reaching historical highs several times. Chocolate producers have already raised prices for consumers after three years of poor cocoa harvests, and a fourth year of poor harvests is likely to be expected in Ghana and Cote d’Ivoire, which produces nearly 60% of the world’s cocoa.
International Cocoa Organization (ICCO) forecasts that global production will fall by 10.9% this season to 4.45 million tons. According to ICCO, due to mismatch between supply and demand in the market, there will be a shortage of 374 thousand tons this season compared to 74 thousand tons last season.
Ukrainian confectionery producers are also under pressure from rising world prices for cocoa beans. They now rarely buy raw cocoa beans, since cocoa processing is not common in Ukraine. However, they purchase processed products made in Europe, the prices of which are also actively growing.
For Ukrainian confectioners, this has a very negative impact, since, along with a sharp increase in the cost of raw materials, they also face logistical problems caused by protests from Polish farmers, said the head of Ukrkondprom Alexander Baldynyuk. So, according to him, the cost of delivering a ton of processed cocoa is $6,600.
At the same time, Ukrainian confectioners are trying to maintain prices. Due to the high competition in this market, even a slight increase in the price tag for the consumer can lead to the loss of position by the manufacturer. To maintain profitability, confectionery companies can start producing sweets with less cocoa content, Baldynyuk does not rule out. But prices for chocolate with a high percentage of cocoa in its composition will not be able to be maintained.
As OBOZ.UA previously reported, the crisis with cocoa bean prices is already having tangible consequences. For example, well-known confectionery companies do not include chocolate in their sweets, but do not reduce prices.
In addition, a similar situation is observed in the banana market. These fruits are already expensive in Ukrainian supermarkets, and in the near future bananas may become even more expensive due to global climate change.
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2024-03-14 19:47:00
