Bittersweet Easter looms as chocolate crisis hits consumers and producers
The current global cacao shortage is dramatically impacting Easter celebrations this year, driving up chocolate prices and shrinking product sizes, mainly because of challenging harvests in West Africa
Easter celebrations this year are overshadowed by soaring chocolate prices and shrinking product sizes, with the global cacao shortage hitting consumers and smallholder producers hard.
Cocoa prices have surged to unprecedented levels, exceeding $10,000 per tonne, primarily because of poor harvests in West Africa, the hub of global cacao production.
Countries like Ghana and the Ivory Coast, which produce over half the world’s cacao, have faced extreme weather intensified by climate change and the El Nino phenomenon.
The price hike has been further fueled by speculation, with hedge funds betting over $8 billion on rising cocoa prices, as reported by the Financial Times.
The crisis has put significant pressure on chocolate manufacturers. Nestle, which owns brands like KitKat and Smarties, has hinted at inevitable consumer price hikes.
Similarly, Lindt & Sprungli, known for their popular Easter bunnies, anticipates further increases in 2024 and 2025.
According to the Associated Press, this follows a trend in which global confectionery giants like Hershey and Mondelez International have seen profit margins soar despite rising cocoa costs.
In contrast, smaller businesses face stark challenges. Niaz Mardan, owner of Sandrine Chocolates in London, is struggling to keep her shop afloat amidst crippling cocoa prices and declining sales because of the U.K.’s cost-of-living crisis.
Ironically, the surge in cocoa prices has not translated into benefits for smallholder cocoa producers in West Africa. Despite the price hike, farmers like Eloi Gnakomene from Ivory Coast and Opanin Kofi Tutu in Ghana confront reduced yields, high fertilizer costs, and adverse effects of climate change.
Initiatives to educate farmers on mitigating climate change impacts and promises from Ghanaian President Nana Addo Dankwa Akufo-Addo to secure better deals for farmers offer a glimmer of hope.
With Easter around the corner, consumers are expected to feel the pinch. The National Retail Federation predicts robust Easter spending, although slightly lower than previous years.
Simultaneously, brands like Toblerone and Lindt have raised prices for Easter products by about 50%.
Source: Newsroom
