Cocoa Shortage In West Africa Affects Easter Chocolate Prices

Chocolate eggs and bunnies are more expensive than ever, as climate change depletes global cocoa supplies and farmers' profits in West Africa.

Cocoa Supply In West Africa

Cacao plants in Ghana, Ivory Coast, Nigeria, and Cameroon provide almost three-quarters of the world's cocoa, which is used to make chocolate.

Experts believe the shortage is caused by a combination of causes, including climate-related weather occurrences and the chocolate industry's inherent exploitation. It has arrived at a time of growing worldwide demand, resulting in scarcity and resultant price increases.

Other causes believed to be contributing to the scarcity include rising fertilizer prices, deforestation, and illicit mining methods that degrade land.

"The [agricultural] challenges include various pests and diseases of cocoa, aging trees on many farms, declining soil fertility and more variable and extreme weather events resulting from climate change," said Dr Andrew Damyond of the School of Agriculture, Policy and Development at the University of Reading.

He also added that the recent El Niño event has resulted in a wetter rainy season in West Africa, leading to higher cocoa pod losses due to pod rot.

Cocoa trades on a regulated global market. Farmers sell to local dealers or processing firms, which subsequently sell cocoa products to international chocolate makers.

Prices are established up to one year in advance. Many farmers blame climate change for their bad harvests. Cacao plants only grow near the equator and are highly sensitive to weather fluctuations.

"The cacao hasn't even produced any fruit. People say that we've had a bit, but those living over that way, they've had nothing," said Eloi Gnakomene, a cacao farmer in Ivory Coast.

Chocolate Prices

Cocoa futures have already doubled this year, trading at a record high of more than $10,000 a metric ton in New York, following a 60% increase the previous year.

Farmers who harvest cocoa beans believe the raises are insufficient to offset reduced yields and increasing production costs.

However, the strong Easter demand for chocolate represents a potential treat for large confectionery producers.

Major multinational manufacturers in Europe and the United States have more than passed on the increase in cocoa prices to customers.

The Hershey Company's net profit margins climbed to 16.7% in 2023, up from 15.8% in 2022. Mondelez International, which owns the Toblerone and Cadbury trademarks, reported an increase to 13.8% in 2023 from 8.6% the previous year.

Consumers are keeping track. Which? , a consumer research and services company based in the United Kingdom, this year's chocolate Easter eggs and bunnies from well-known brands such as Lindt and Toblerone cost almost 50% higher. It also mentioned that certain candy eggs were smaller.

Dr. Michael Odijie, who has been researching cocoa farming conditions in West Africa at University College London, believes that a historical emphasis on keeping consumer prices low has contributed to long-term exploitation.

"I believe chocolate products are too cheap, resulting in cocoa farmers not earning enough to sustainably cultivate cocoa. Many problems in cocoa farming stem from this, including child labour and child trafficking as well as unsustainable cultivation methods," he said.