Cocoa Prices Soar to Unprecedented Levels as El Niño Damages Chocolate Crop

The price of cocoa has reached a new record high due to dry weather affecting crop production in West Africa. On the New York commodities market, cocoa prices hit an all-time high of $5,874 per ton. This marks a doubling in cost since the beginning of last year. These soaring cocoa prices are now beginning to impact consumers and put pressure on major chocolate manufacturers. Hershey, one of the largest chocolate companies globally, warned that historic cocoa prices will likely limit earnings growth this year. The company's CEO, Michele Buck, did not rule out raising prices for customers. Other chocolate companies, such as Mondelez, are also facing challenges due to rising ingredient costs. UK consumer group, Which?, reported that the price of festive chocolate boxes increased by at least 50% in a year. The rise in cocoa prices can be attributed to poor harvests in West Africa, exacerbated by the El Niño weather phenomenon causing drier conditions in Ghana and Ivory Coast, the two largest cocoa bean producers in the world. Climate change, with its hotter temperatures and altered rainfall patterns, is also impacting harvests.