Chocolypse Now: Cocoa Prices Ignited by El Niño! Can You Afford Your Favourite Treats?
The price of your favourite chocolate treat could be on the rise. El Niño and climate change disrupt cocoa production in West Africa, pushing cocoa bean prices to record highs and threatening the global chocolate supply.
El Niño's Double Whammy on Cocoa Crops
In 2023, West Africa experienced heavy rainfall that devastated cocoa fields. Unfortunately, 2024 saw a dramatic reversal with the arrival of El Niño-induced drought. According to climate experts, these weather extremes have tripled cocoa bean prices since March 2020.
Record High Cocoa Prices Threaten Chocolate Supply
The price of cocoa, the heart and soul of chocolate, has skyrocketed to a staggering $5,798 per metric ton, the highest point in 65 years. This surge stems primarily from poor harvests in Ghana and Ivory Coast, contributing 60% of the global cocoa supply. El Niño's erratic weather patterns, characterised by heavy rains followed by scorching dry spells, have wreaked havoc on cocoa crops, leading to significantly reduced yields.
Chocolate Companies Feeling the Squeeze
Chocolate giants like Hershey's and Mondelēz (Cadbury's parent company) are already feeling the pinch of rising cocoa costs. This could translate to potential price hikes for consumers in the near future. Rising chocolate prices could also exacerbate food insecurity, particularly in regions where chocolate is a source of affordable calories and essential nutrients.
Sustainable Practices: The Key to a Secure Chocolate Future
Ensuring sustainable cocoa harvesting practices is crucial to guarantee a steady supply of cocoa beans in the face of climate challenges. Want to see firsthand how cocoa is harvested and transformed into delicious treats? Tune in to "Hotel Chocolate" on Global Trekker for a behind-the-scenes look at Britain's largest independent chocolate company, Hotel Chocolat.
The Cocoa Harvest Season: A Factor in Supply Chain Fluctuations
Only one of every thousand cacao tree flowers will grow to be a cacao fruit! They are susceptible to weather conditions, with ideal growing conditions requiring consistent warmth, rainfall, and humidity. Traditionally, there are two main cocoa harvest seasons throughout the year in West Africa:
The primary harvest season occurs between October and March in the Northern Hemisphere.
The minor harvest season occurs between May and July in the Southern Hemisphere.
Unfortunately, the recent weather disruptions have significantly impacted these harvest cycles, leading to the current shortage and price hikes.
The Global Reach of Food Price Fluctuations: A Case Study
Inflation is a global phenomenon impacting various food items. Here's an example from across the globe: In 2022, South Korea experienced a similar situation with rising food prices, particularly for a national favourite—fried chicken. Homeplus, the country's second-largest retailer, launched their "Dangdang" ("fair" or "proud") chicken, offering deep discounts to attract budget-conscious consumers. This unexpected move sparked a price war with established franchises, highlighting the growing influence of food prices on everyday life and the innovative tactics employed to combat inflation. To delve deeper into this fascinating story, check out our article: Fried Chicken: From Inflation Indicator to Price War Battleground.
The Future of Food: A Multifaceted Approach
These situations underscore the vulnerability of global food supply chains to weather patterns, climate change, and economic fluctuations. Moving forward, ensuring the sustainability of both cocoa production and poultry farming is crucial to prevent future price spikes and disruptions for consumers worldwide. Additionally, efforts to address food insecurity require a multifaceted approach that considers not only affordability but also Sustainable harvesting practices, and Earth Action which are crucial to ensuring a steady supply of cocoa beans.
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