Cocoa price rises to a new record high – E24

One ton of cocoa costs more than $10,000.

Commodity prices for cocoa continue to rise, hitting another record high on Tuesday.

The price of cocoa rose on Tuesday to more than $10,000 per ton, a new record high, Bloomberg writes. This corresponds to just over NOK 107,000 at today's exchange rate.

New York futures prices jumped as much as 4.1 percent on Tuesday to $10,047 per ton.

The price of cocoa has risen so far this year, and cocoa has set several records so far this year.

according to CNBC Cocoa is the raw material whose prices have risen the most this year so far. At the beginning of 2024, prices were less than US$4,200 per ton.

Rising cocoa prices are expected to drive chocolate prices through 2024, Bloomberg writes.

Poorest crops

The rise in prices comes after harvests in many West African countries were poor in recent years.

The El Niño climate phenomenon, which has brought drought, forest fires and heavy rains, is among the reasons for poor harvests. In addition, virus outbreaks have destroyed cocoa crops.

The cocoa industry is largely made up of small farmers who have long struggled with poor profitability, making it difficult to cope with extreme weather conditions, according to Bloomberg.

According to the International Cocoa Organization, the ratio between stocks and production of cocoa beans is expected to fall to its lowest level in more than four decades, Bloomberg writes.

-The supply situation in West Africa remains very tight at the start of the mid-season next week, and that continues to support cocoa prices, the Hightower Report wrote in a note, according to Bloomberg.

Chocolate is more expensive

Swiss chocolate maker Lindt & Sprüngli announced earlier this month that it would have to raise prices this year and next due to rising raw material prices, Bloomberg reported.

Mondelez International's CFO indicated in February that price increases would likely continue, while Hershey CEO Michel Buck said that “the company is committed to pricing to cover inflation.”

People in Norway may be able to pay more for cocoa, even if prices are higher globally, Christian Anton Smedshog, managing director of Agri Analyse, told E24 in February.

– Maybe we will be able to get what we want, and I don't think it will be that bad. But prices will be able to rise in the long term, perhaps from the fall onwards, Smedchug said.