The most expensive Valentine’s Day: cocoa prices reach maximums due to the impact of the climate

Showing your love can cost you dearly Valentine’s Day due to the rise in prices of cocoaat historic highs due to environmental problems in Ghana and Ivory Coast, the world’s main producers.

According to the CNBC network, the key product for the production of chocolate has become more expensive by 40% since the beginning of the year in USA.

Last Friday, cocoa futures for delivery in March in New York and London closed the session with a price of US$ 5,888 per ton, the highest figure in its history.

A year ago, the price was US$2,600 per ton. In fact, the prices of chocolate They grew 10% in the United States, a rate three times faster than inflation.

Also the prices of sugar, another key product in the production of chocolate, grew by 25% last year.

The main problem is the El Niño phenomenon, which has brought much drier conditions to West Africa, where around 60% of global cocoa production is concentrated.

According to the Climate.gov information portal, managed by the US National Oceanic and Atmospheric Administration (NOAA), the optimal areas for cocoa cultivation will move to higher altitudes by 2050.

This could force governments in countries like Ghana to use land that is currently protected for the production of cocoa.

High prices have also affected the finances of the country’s main chocolate companies, such as Hershey, whose profits for the fourth quarter of 2023 fell 11.5% compared to the previous year despite the fact that its sales grew slightly.

The company’s CEO, Michele Buck, explained that rising cocoa prices will continue to limit its growth. The company also announced the layoff of 5% of its staff, and suggested that it is considering raising the prices of its products to meet the new costs.

However, according to the Mintec firm, which analyzes raw material price data, the demand for chocolate It usually remains high during periods of economic insecurity, so a rebound in sales is still expected to be seen this Wednesday.

“This perhaps aligns with a human tendency to seek ‘small pleasures’ during times of uncertainty, and chocolate is known to improve mood,” can be read in a recent report.