Skyrocketing Chocolate Prices Explained

Skyrocketing Prices of Chocolate Explained

The global cocoa production has taken a significant hit in the 2023-24 season, according to a report by Christian Aid. The production fell by approximately 14%, a stark reminder of the impact climate change is having on the industry.

This report, originally published by Grist, a nonprofit, independent media organization dedicated to telling stories of climate solutions and a just future, highlights the challenges faced by cocoa producers in tropical nations like Côte d'Ivoire, Ghana, Cameroon, and Nigeria.

These countries, which account for about 70% of the world's cacao production, are seeing their cacao trees struggle due to changing rain patterns, accelerated droughts, and the spread of devastating diseases like pod rot. Climate change is also contributing to soil degradation, pushing temperatures beyond the optimal range for cacao growth during primary harvest seasons.

The U.S., which imports around $2.8 billion worth of chocolate every year, representing over 10% of the world's supply, is not immune to these price increases. Last year, the soaring price of cocoa on the futures market shattered a 47-year record.

The rising cost of growing crops in a warming world is causing financial strain for farmers like Emmanuel Essah-Mensah in Ghana and Josephine George Francis in Liberia. Exposure to temperatures higher than 89.6 degrees Fahrenheit prompts water stress, hinders plant growth, and erodes the quality and quantity of seeds the trees yield.

However, not all is doom and gloom. Some chocolatiers, such as Mars and Hershey, are responding to the rising prices by reducing the amount of cocoa or introducing treats that eliminate it entirely. Meanwhile, companies involved in chocolate production are addressing the impacts of climate change.

Start-ups like nucao use fair-trade cocoa from agroforestry and support reforestation projects planting over 10 million trees. Fairtrade initiatives help cocoa farmers become more resilient by promoting mixed crops and shade trees protecting cocoa plants from heat. Large retailers like Migros pursue sustainability strategies to reduce emissions across their supply chains and operations.

Yet, analysts expect to see demand for chocolate wane as prices continue to rise. This is not just due to the rising costs, but also because sugar, another essential ingredient in confectioneries, has sold at some of the highest prices in over a decade due to extreme weather constraining global sugarcane production.

For those who love chocolate, this news may come as a bitter pill to swallow. But it serves as a reminder of the far-reaching effects of climate change and the need for collective action to address it. The full article can be found at https://grist.org/food-and-agriculture/climate-change-is-scorching-the-cocoa-belt-and-youre-paying-the-price/.