Lock in Chocolate Chip Prices Before Cocoa Inflates!
Cocoa prices have surpassed a 46-year-old record, with cocoa futures closing Thursday at $5,635 per metric ton, surpassing the previous record of $5,368 set in July 1977. This 7.1% price increase arrived just ahead of Valentine’s Day (2).
Projections indicate a greater global deficit for 2023-24 than previously anticipated. Cocoa bean arrivals at ports in the Ivory Coast and Ghana—the two leading cocoa bean producers globally—have been approximately 35% lower compared to the same period last year (5).
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“Cocoa’s troubles stem from extreme weather in West Africa, where farmers grow the majority of the world’s cacao beans” (4). According to Billy Roberts, a senior analyst at CoBank, West Africa experienced extensive rainfall followed by a prolonged dry spell and strong winds, creating harsh growing conditions for cocoa (4). Pest and diseases have only exacerbated existing issues. Consequently, cocoa harvests have fallen short for the third consecutive year. Buyers may not have to worry about high prices in the short term. Chocolates for the Easter season are likely already manufactured and waiting in warehouses or on store shelves. The real test of pricing will come later this year with products that are not yet produced, according to Matt Spooner, a thought leader with management company Kinaxis—which works with cocoa producers on securing their supply chains (1). Spooner anticipates a price hike in chocolate towards the end of the year, particularly around Thanksgiving and Christmas, as manufacturers begin passing on additional costs (1). What do these persisting market conditions mean for food manufactures relying on chocolate inclusions? It means the time to stock up on chocolate is now. Icon Foods chocolate chips, coatings, and candies are zero sugar added with no compromise on flavor or mouthfeel. Non-GMO and made with diabetic-friendly sweeteners, they add flavor and texture to applications while driving down water activity. Order now while the prices are low, weather is right for shipping, and stock is ample. After this stock is depleted, prices will be going up. Contact us for pricing and samples! |
Chocolate Stock… |
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Sources
- Casey, Chris. “Cocoa Supply Issues Could Lead to Smaller Chocolate Bar Sizes: …” Food Dive, 13 Feb. 2024, www.fooddive.com/news/cocoa-supply-smaller-chocolate-bar-sizes-kinaxis-ivory-coast-hershey-mondelez-easter-candy-prices/707370/.
- Dezember, Ryan. “Cocoa Prices Surge Past a 46-Year Record.” The Wall Street Journal, 8 Feb. 2024, www.wsj.com/livecoverage/stock-market-today-dow-jones-earnings-02-08-2024/card/cocoa-prices-surge-past-a-46-year-record-g0cpLc8Is8Sb83c9qrbC.
- Fortinsky, Sarah. “Cocoa Prices Reach Record High Ahead of Valentine’s Day.” The Hill, The Hill, 14 Feb. 2024, thehill.com/business/4463730-cocoa-prices-record-valentines-day/.
- Selyukh, Alina. “Cocoa Prices Spiked to an All-Time High Right before Valentine’s Day.” NPR, NPR, 12 Feb. 2024, www.npr.org/2024/02/12/1230120289/valentines-day-chocolate-cocoa-prices.
- Sterk, Ron. “Cocoa Bean Futures at All-Time High.” Baking Business, Baking Business, 8 Feb. 2024, www.bakingbusiness.com/articles/60840-cocoa-bean-futures-at-all-time-high.
